In a kind of cruel reversal, China’s old migrant class — uneducated villagers who flocked to factory towns to make goods for export — are now in high demand, with spot labor shortages and tighter government oversight driving up blue-collar wages.
But the supply of those trained in accounting, finance and computer programming now seems limitless, and their value has plunged. Between 2003 and 2009, the average starting salary for migrant laborers grew by nearly 80 percent; during the same period, starting pay for college graduates stayed the same, although their wages actually decreased if inflation is taken into account.
Chinese sociologists have come up with a new term for educated young people who move in search of work like Ms. Liu: the ant tribe. It is a reference to their immense numbers — at least 100,000 in Beijing alone — and to the fact that they often settle into crowded neighborhoods, toiling for wages that would give even low-paid factory workers pause.Jim Chanos: Adam Smith Will Get His Revenge In China
Jim Chanos is on CNBC this morning, and he's talking China.
He's still bearish, particularly on industrial commodities that China imports (iron ore, specifically).
Based on his data, there's still a huge boom in condo development, and yet actual purchases have already flattened out, suggesting massive unsold inventory is already piling up.
As for ramifications of a crash, he argues that the US would be in relatively good shape and that Europe would be far worse off, given how much more they export to China.
Inflation was 4.4% in October in China and 5.1% in November.
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