BEIJING, Oct. 7 -- China's pursuit of high-end manufacturing and relocation of labor-intensive factories will generate opportunities for other emerging markets (EMs) in Asia to bolster economic growth, Fitch said in a report.
The rating agency said Asia's "frontier" EMs, such as Vietnam, will benefit from industrial transfers, but noted preconditions, including a sound business environment and political stability.
"China's rising wages, higher land costs and real exchange rate appreciation over the past decade have reflected policy efforts to rebalance the economy and raise living standards, but they have also reduced low-end manufacturing competitiveness," the report said.
Wages of manufacturing workers in the country have surpassed those of other EMs in the region, while ongoing urbanization and an aging work force will continue to drive the rise.
Chinese firms, along with peers from other manufacturing nations, have started to transfer at least part of their production bases to less-developed economies in search of lower labor costs. Domestically, the government is pushing industries to move up the value chain, shifting to a new growth pattern based on innovation rather than cheap labor.
Fitch pointed out that China's global share of exports of clothing, footwear and furniture, although still considerable, is retreating from its peak in 2017.
"A significant drop in China's low-end manufacturing over the coming decades would leave a large gap for lower-cost countries to exploit," according to the report.
【国内英语资讯:Chinas economic shift creates opportunities for other emerging markets: report】相关文章:
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