Month: April 2016

This is an example of a good summary & reaction post:

Summary
China’s manufacturing activity shrank for the first time in seven months in December.
The final HSBC/Markit Purchasing Managers’ Index was down from a final reading of 50 in November. The most recent data showed the slowing Chinese economy. New factory orders shrank for the first time since April. In November, China’s central bank cut interest rates to 2.75% for the first time since 2012 in an attempt to revive the economy.

Opinion
China is the second of the greatest economic powers in the world and its influence becomes lager than before. However, Chinese economy has some problems such as slowing economy as this news imply. Today I would like to explain about another problem; rising the cost of labor and prices of commodities and land.
China has been called “factory of the world”. There are a few reasons. First is a big amount of labor, second is a large land, third is a cheap labor and cheap the prices, but the final factors have been changing from a little while ago because of rapid economic growth. Prices of commodities and land have been increasing year by year, these prices grow by several times in a one or two decades. The rising these prices has an influence to the cost of labor and the cost has been also rising quickly. In the not far future, the cost will be increased more and an advantage of the cheap cost will be lost.
For this reason, the name “factory of the world” will move to other developing countries in the future.