The United States isn’t the only country that is losing manufacturing jobs. China is facing a monumental manufacturing dilemma, and the Chinese don’t know what to do about it. China has been making cheap products for years, and those products helped curb inflation in their trading partners. But the massive factories in China have been coping with soaring land prices, tax increases, safety regulations and a major spike in labor cost. China is the second largest economy in the world. The Chinese earned that title by producing cheap goods and exporting them. But those days are coming to an end. The Chinese economic boom started to deteriorate in 2012, due to labor and other costs, and those costs continue to increase.
The United States went through a similar situation in the 1970s. More than seven million factory jobs were lost back then. Many of those jobs went to China and other countries. But even though there was a massive job exodus in the U.S. forty years ago America is making more products now than it did then. The reason for the increase in product manufacturing is due to automation.
Donald Trump promised his followers more manufacturing jobs. But many of those jobs will be filled by robots. The tech industry will fill a void in manufacturing plants around the globe, but the amount of people needed to fill those jobs will not be what Trump promised, according to several economists. China and the United States both have manufacturing issues. But the United States is correcting some of those issues with technological advancements. The Chinese are behind in that regard. Their manufacturing base is eroding, and that may produce worldwide inflation sooner than later.