University of Rhode Island
Textiles, Fashion Merchandising and Design
Dr. Arthur Mead: China Demographics and Economy
by Laurel Noveck
Art Mead challenges TMD seminar students
Dr. Arthur Mead quoted the great Napoleon, “Let China Sleep, for when she awakes, she will shake!” Well it looks like China is starting to wake up, and she is causing quite the controversy. China’s power is definitely rising. The graphs Dr. Mead showed about China’s economy, trade, and population were just the proof, the facts are alarming.
It used to be that the world was Communism versus Capitalism. It does not seem to play out that way anymore. Today it is more like the Rich versus the Poor. In the future the United States will be the only rich country to have an escalating population. All the other countries are declining in population, including China (due to its little emperors and one-child only policy). This is allowing China to slowly start to gain back the power of the world they once had. For example, our United States GDP will double in 25 years, but China’s will double in only 7 years.
In 1979, China was still a communist country, but they opened up their trade market. This removed all the barriers, and gave way to a level playing field across the Pacific Ocean. In the last four years, China’s share of the apparel market went from 10% to 70%. Although textiles are not big in the international trade, it is surely a great career ladder for women, and a way for them to escape poverty.
Wal-Mart, the world’s largest company, pulls all of its merchandise from China, and contributes to China’s new found wealth. Wal-Mart is successful in that it offers great merchandise at extremely low prices. China is beating out all other countries with their trade because they offer the best price compared to other exporting countries. Their prices in apparel are coming down mostly due to cheap labor prices. They are able to do this because of the excess amount of workers they have. If the cost for laborers in manufacturing is $1.00 in the United States, and 15 cents in Mexico, then it is only 5 cents in China. Because they spend less money on their employees, their products mirror that in their prices
China seems to be the only country that has exports that are growing, and vastly too. All other countries that export goods are falling in trade. The United States imports mainly from Africa and China. We depend a whole lot on China. Each year China lends the United States $201,626 billion dollars. We need them to help finance our country. They need us to help employ them.
The world is slowly but surely changing. The main factors of this drive for change includes: demographics, slower growth rates, people who are becoming much older, poorer, less white and more urban. China’s population is taking a toll on that as well. Recently China’s cities are offering the most money. Their 40% population of people in urban areas now increases to 60%. China’s cities have gained 342 million people from rural areas that had 800 million people. The urban areas in China are growing and offering many great jobs for many people all over the world. Architects are big fans of China where they can finance spectacular buildings. Cosmetic companies are also battling for the face of China. With so many opportunities arising in China, we can only wait to see what great things come of this rising country.
How does this known past impact the unknown future? The near future is seen to be a Pacific Century meaning trade across the Pacific will dominate as technology, space exploration and green movements continue to grow in China. The question remains, is democracy an American ideal that won’t translate to Asian values?