by John Lee
July 31, 2014
China has long been a tough competitor for countries on the lower-skilled, lower value-added end of the manufacturing chain. Now it’s gaining ground in higher value-added manufacturing, edging out higher-skilled economies as well. But rising manufacturing wages and disruptive new technologies like robotics and 3D printing both threaten the edge that China gained from cheap, plentiful, large-scale labor. Advanced economies’ demand to hedge against over-reliance on China as “the factory of the world” is high. China and the numerous developing economies seeking to emulate its success must adjust their strategies if they want to remain competitive in a rapidly changing world.