Is China’s great deceleration beginning? American businesses think so. In a survey cited in the Wall Street Journal, a 45 percent plurality of American businesses see slowing growth in China as the greatest risk to their interests in that country in 2012. This number is considerably higher than in past years.This finding wasn’t the only bit of bad news for Chinese growth. The rising wages that are lifting tens of thousands of Chinese workers out of poverty are having a side effect—the cheap, qualified labor that used to be so easy to find in China is increasingly scarce. Almost 40 percent of businesses surveyed cited the difficulty of finding qualified labor at discount prices as another major impediment to their business in the country. With Chinese exports slowing due to a shaky world economy and a crisis in Europe, the evidence is stacking up that a major change is on its way.While we should be cautious about reading too much into surveys of a select group of American businesses, this trend is one to watch. Even if no one knows exactly when, it’s increasingly clear that China’s era of meteoric growth will come to an end sometime soon.
American Businesses See Warning Signs in China
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