There’s A Crisis That Is Quietly Creating New Economic Superpowers…

There’s A Crisis That Is Quietly Creating New Economic Superpowers…

As China begins to reopen its factories and return back to work, what they are returning to will not be the same…

Despite China being the worlds economic darling for the last 40 years, the balance of the worlds economic power has begun to shift to some places that you might not expect.

In fact, we are already starting to see some signs of other nations around the world, rising up in order to take away some of China’s manufacturing prowess away from them.

And who knows, we might be witnessing the creation of the next generation of economic superpowers, right infront of our very eyes.

But the reason that this is happening is a little complex. it started a few decades ago in 1970’s China when the country began shifting its economic policy away from communism, and more towards capitalism.

They soon began building specific economic zones where massive ports and factories could be built that would maximize productivity and efficiency. And once these economic zones were opened up to foreign trade and investment, China’s economy began exploding.

In the 1980’s many fortune 500 companies began having their products manufactured in China because China could make their products with a similar quality, but for a substantially lower price than if they were manufactured in the west.

And this was because of the extremely low wages that Chinese workers made, combined with other factors like tax laws and import/export efficiencies.

So all of a sudden, if a competitor chose to manufacture their products outside of China, they simply could not compete on price, which would likely have made them go out of business.

And because of this, by the 2010’s, one third of all products on the planet were manufactured in China.

Within the span of 50 years, China has turned itself around from an impoverished nation of farmers, to a nation that has the second largest economy in the world, behind the United States.

But a few strange things began happening in the past few years.

Here’s a question…what happens when a country who builds its economy based upon low labor costs, all of a sudden becomes succesful and wealthy?

In 1990, the average yearly wage from a Chinese worker was about $150 USD. By 2005, it was $2800 Dollars. In 2015, it was $8900. And as of this year, the average Chinese worker will make around $13 500 dollars.

That is a massive increase that has seen the average wage of a manufacturing worker increase by over 8500% over the last 30 years.

And what this means is that the cost of making products in China has become a lot more expensive than it used to be. Companies can’t make products for an 80% discount in China, like they used to. And because of this, we actually began to see a decline in Manufacturing in China in 2016, where for the first time in the countries modern history, their manufacturing output actually decreased by 2% during that year.

But that was just the first factor coming into play. after 2016, China once again saw modest increases in manufacturing output, until the United States imposed tariffs on imports from China. this caused a decrease in Chinese imports to the US by 7% in 2019, and forced many companies to begin looking for product sourcing in other countries.

And if that wasn’t enough, privacy concerns and tensions between China and the Western world have been on the rise ever since the country began taking over part of the worlds tech sector.

Ever since then, governments around the world have been actively trying to push Chinese technology out of their countries, while also incentivizing businesses to make their products domestically instead of China.

In fact, just last week, the departments of justice in the United States have requested that the FCC terminate China’s Telecom Authorization in the United States, citing it as a national security risk.

And all of these things, from rising labor costs, to geopolitical issues, have led us to today…and the pandemic.

You see, even though China-sourced manufacturing has been slowing down over the past decade, the country still remains the largest manufacturer in the world.

india economy. China economy. Vietnam economy. Mexico Economy. United States Economy.

Too long, End of Transcript.

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84 Responses

  1. Jack Chapple says:

    What do you think is going to happen with the future of manufacturing? Let me know int he comments down below! Also, again holy moly, 190k subscribers! Thank you all, i love each and every one of you ❤️❤️❤️

    • 1Skeptik1 says:

      @Rick Winslow We can count on our officials claiming the “quarantine” a great success. Bottom line: I’m an old man and very wary of professional politicians. We had at least a half dozen manufactured crisis events in my life and usually for profit. (climate both cooling and warming, ozone hole, overpopulation and starvation, gas lines and shortages, peak oil, aids, aerosol propellant / freon, fall-out shelters etc.) Pandemic vs.seasonal flu? We will see what the numbers show. Cheers

    • Youtubers rule Youtube says:

      Jack Chapple https://youtu.be/J-3lJS-eG5E

      hmm

    • Rick Winslow says:

      @AtemerusRhayli mmm, I don’t think so. I would invest in Mexico before China at this point. That is after I short sell the Chinese market. The SSE is my bitch.

    • Justin Lewis says:

      There is No COVID19. It is merely a gateway to new, restrictive legislation that will remove the civil liberties of United States citizens. No one has actually died from COVID19 because it isn’t a real virus. Coronavirus has 6 known strains and is animal based and has not jumped species – even the USDA says so as of last week. That is why a NEW one had to be created. This is nothing more than a drive tactic to move citizens to an agenda without contention. COVID19 Is Not What You Think … http://livinginconsciousness.blogspot.com/

    • Kpop3X OG says:

      I agree but only to a certain extent. These countries require significant social and political reformation, otherwise it will be difficult to trust and depend on them (look at what we just went through with China for the past 25 years). The biggest thing that prevents these countries from succeeding is their own culture and unchecked corruption at all levels of social and political institutions. With that factored in… I don’t think they are very close to becoming legit economic superpowers. Without significant reformation any wealth that is accumulated will be funneled to the elite and corrupt. “Mo money… Mo problems” – Notorious B.I.G

  2. Patrick Silva says:

    I’ve always thought putting all of our manufacturing needs in one country was a very bad idea regardless of which country it is in. It’s sad that it took a pandemic (and trade war) to rethink our reliance on China..

    • C. Gomez says:

      The same goes for the other countries, why would they put their financial and technological needs in the USA? It is kind of stupid, right? However that is why we have the most important reserve currency and the biggest stick: the biggest military in the world. Power shifts and empires fall, always. The manifest destiny is not a destiny and god did not design it, and no nation is indispensable.

    • RICKS WORLD dereaux says:

      Yes, they not trustworthy so they will split the productionchain to other Countrys, its a logical decision to keep the supplielines going. 🤔

    • Phil 488 Pista says:

      @RICKS WORLD dereaux Then, people will b1tch and moan about other countries later! 80s 90s to Japan and now China! See the pattern?

    • RICKS WORLD dereaux says:

      @Phil 488 Pista Dude there is already a new Coldwar going on, maybe you too dumb to see it coming.. 🇺🇸🇨🇳and it started with a Tradewar.

    • kimckawa says:

      I think that was the grand bargain back when…China being producer nation and US consumer. What the US have that Chinese dont is the printing press to print unlimited money to buy and consume thus Americans being obese and most unhealthy of any nations. This is also the case with Mideast oils…we cant have both ways sorry. Hw it appears China now wants the printing press to become conusumer nation and America will then become producer/manufacturer

  3. Vishwajeet Nand Yaduraj says:

    And still I will be poor having no money…..😔😔

    • arno nabuurs says:

      The problem is you

    • Amelia Smits says:

      @George Shelton I hope we start making our own products and not depending on China anymore. Even not having to depend on the States too would be good as well. Britian babied us for so many years, and we need to get out of that habit and become independent once more again. We became independent in 1867 known as Canada only. Now let’s become independent product making wise.

    • Mike Jones says:

      @George Shelton Right do we lose faith in him or is there a light at the end of the tunnel?. So many bad things are happening across the world and the elite people constantly cast evil things upon us but the devil is a liar and we will prevail.

    • Vishwajeet Singh Virk says:

      same name same situation 😔😔

    • jjrod33 says:

      Oh well sucks to suck

  4. Mark Anthony says:

    0:12 it killed me bro

    • Violated Gerber Baby says:

      ”EKRINERMIC”… lol was he having a stroke?!

    • George Shelton says:

      We’re going to need a miracle, to get out of this one. Red China is gaining power over us; most of us don’t know about, this place that exists in Saratoga CA. That’s the CCIC (Chinese Church in Christ).

    • George Shelton says:

      Most of us fellow Americans; don’t know about, the secret of prayer.

    • George Shelton says:

      It’s hard to believe that; Mandarin Communism is more, consistent/aggressive than Soviet Communism.

  5. Vladimir Putin says:

    This video thumbnails: EXIST!

    Vietnamese people: ANGRY!!!!

  6. Vamsi Krishna Dhulipala says:

    Note: Idea behind my comment is purely about the Economic growth (That might or might not happen in India) and its effects on Environment.

    There is a proverb in South India
    “Instead of running fastly, getting thirsty and drinking milk better walk slowly and drink water when required.”

    Constant growth is better than Rapid.

    Please don’t pollute our (India’s) Waterbodies, air and other natural resources by building manufacturing units.

  7. Sushant Vs says:

    5:46 its 2.2 trillion dollars not billion..

  8. George Martin says:

    It seems sad that the rise of economic power happens on the backs of the desperate poor, and yet this is the historic path. America will get its turn again.

  9. BigE9973 says:

    They way you mention “cheap labour ” as this amazing, positive thing, is one of the problems with this world! Makes me sick!

    • Tony Fang says:

      @SawChaser its because capitalism your government won’t shout down most of the commercial activities til its too late.
      Became USA is governed by cooperation for the money not for the people.

    • Mr Rif says:

      @Tony Fang it happend the same in socialist countries, like mexico, again the problem is not capitalism but goverments

    • Daniel Braga says:

      Your sickness about cheap labour is caused by your own lack of understanding of the nature of things that obey natural logic. People offer their labour for cheap price because they want to work hard to end they own suffering. If nobody wants to buy their hard work, their suffer will never end. Moreover, when labour is cheap, the products they work to produce will be accessible to this same people who are offering they work for cheap price. If you don’t hate poor people, please let they work hard and buy cheap products to end their own suffering.

    • Anes Kralj says:

      @Daniel Braga My sickness, Oh dear you make laugh. People need to work to make money of it. Which is okay and normal. But people want to spend their time with family and friends too. They learns us from beginning “go to school, go get a job and work for 35-40 years go to pension and die. People have to educate themselves and work but their productivity gets better when they are happy. And trust me people don’t want to work for someone and make him rich. You wouldn’t talk like that if you lived like i lived a few years ago. I would like to end this conversation now. That’s all from me

    • SawChaser says:

      @Touringcarton42 than is the question what breeds that lack of civilian cooperation? One reason is bad education. The other is i think high levels of individualism. And that individualistic culture arose from capitalism. I say that as a proponent of capitalism. But you also have to look at the weaknesses.

  10. David Cusack says:

    Different place, same crap. When are we going to learn something.

    • George Shelton says:

      You want to know what Pastor Benny Hinn said about Red China? He said this; “China will be the last country, ever to repent.”

    • George Shelton says:

      What’s very rare is that; we hardly ever have Hollywood vs China, taking place. There are Hollywood celebrities that do have a conscience that, Mandarin Communism is more consistent than Soviet Communism. Even they wouldn’t want China to be the superpower.

    • Esoteric Jahanism says:

      @Charles Young Other countries are not our responsibility. You must not think very highly of nonwhites if you think they are hopeless without the help of westerners. If the west was able to industrialize and progress by ourselves then they should be able to as well. Especially now that they have clear examples on how to do it and all of the technology theh need to do it with has already been invented by us.

    • Luke T.E says:

      @Charles Young no bring them out of communism. And away from chinas control so there people can work and earn money. Not have it stole by there government

    • Luke T.E says:

      @Esoteric Jahanism exactly. We can show them the path show there people how there government is using them. Other than that its them that has to change. Though in that. Usa forced japan and germany to become democratic and more like them after ww2, Japan and Germany both had massive economic growth because of that

  11. shiv singh says:

    When you need more views….you just say those lies which we overpopulation country want to hear…. WRITTEN AS A INDIAN

  12. caveman314 says:

    Narrator: Talks about Mexico at 7:35

    Video: Shows an aerial view of Tampa Florida

    • Gale Mara says:

      Charles Young true, I have worked with a bunch of Asian people and let me tell you, they are some of the rudest people ever. I started working with some Mexicans and they are not only nice but fun people to be around with. They love to have a drink anytime and it’s more fun with them

    • Zabulon says:

      Cartels exists because Americans are the biggest drug addicts on the planet.
      Cartels would not be a problem if you kept your noses clean but you love your drugs too much.

    • Alex Melchor Gaytan says:

      Zabulon you leave my drugs alone!!

    • Green Mango says:

      @Enriqueta Saldivar Well get ready for mother nature then cause…

    • Rocket Man Superman says:

      @J Ward ” America is the most hated country in the world ” Do you even hear your self? Do you know how many millions of people would like to migrate in the U.S ? 750 millions. U.S. still No. 1 desired destination for potential migrants. So tell me why 750 millions of people who hate their country because of low opportunities and harder life would like to migrate there ? The answer is simple… easier life…higher opportunities for you and your children’s…Have you ever travel around the world and notice how life can be harder ? I’m a shame that you mention that you are Canadian as I am too .The U.S as always been giving foreign aid money a lot and the people of the United States has been the most generous country in the world over the past decade. Let’s not forget all the countries they help militarily just like Canada. So please educate your self on the subject and stop putting everybody in the same boat when you hear some negative people saying they hate the U.S. I bet if you lived in a third world country or knew how can life be challenging to get proper medical treatment and the money for it…I’m born in Canada and I’m from Morocco and I go every year see my sister over there and I can tell you everybody who is open minded and is looking for more opportunities would love to migrate in the U.S or Canada where freedom is actually close to the real thing.

      sources: https://www.marketwatch.com/story/the-us-is-the-most-generous-country-but-americans-say-debt-is-keeping-them-from-giving-more-to-charity-2019-10-18
      https://news.gallup.com/poll/245255/750-million-worldwide-migrate.aspx

  13. PhyKo Phy says:

    every kingdom rises and falls over time thats history 101

    • Lithira Atapathu says:

      The phrase “kingdom” you use there specially apply authoritarian regimes,
      Specially CHINA.

      As I see it the West, specially the US,
      is not such kingdom.

    • Lithira Atapathu says:

      THE US is a nation built by the people, for the people, A nation of freedom.
      The world order, the order of PEACE & FREEDOM is because of the US.
      Not China.

    • Jjay Yop says:

      @Lithira Atapathu The US isn’t any of those things. This country would greatly benefit from nationalism

    • Ethan Li says:

      Lithira Atapathu Trust me my friend,every nation is gonna go through that process.

    • Ruben says:

      Your acting like if the UK is a dirt poor country, the way the UK lost majority of its power in the world was from uprising not because their economy failed

  14. Joel says:

    China does not even want to be a manufacturing heavy nation by 2040, they are heavily investing into AI and other related industries. Totally unwell researched report…

  15. Bryan Neumeister says:

    Sales of “stock footage” must be way up 🙂

  16. read Is good says:

    There are global risks that we know a lot about, and then there’s risk #6: The unknown unknown.

  17. Dave Prill says:

    The question is what happens when the “Have’s” run out of Nations of “Have Not’s” to exploit?..

    • Aliven Kikin says:

      Dave Prill exploit? China built themselves from a nation of have nots into a nation of haves how is that exploitation? And if they were exploited how is that business going away going to effect them? They will lose jobs and revenue and they become so their money came directly from other nations investing in them. It’s now china’s job to use the wealth they built to
      Diversify their economy to no longer rely on manufacturing for other nations. The Europeans did it after the industrial revolution which took peopled from the fields and put their in factories and with the wealth it created no longer needed as many factories and moved into new sectors those have nations are have nations because try ey created The wealth through intellectual property and smart work. They built machinery to do the work of dozens of men with less effort. They maximised their potential and because they clsicceeded you blame them, then other nations copied their framework and you say they are exploited yet they now have a living standard 80x higher than they did before they embarked on the industrialisation. You’d have them back in the fields, poor as shit and still you’d lambast the west for the wealth it’s industry has created. You’re talking Marxist bullshit, no Marxist movement has even built an economy like China did under capitalism

    • TheDropdeadZed says:

      @Nunna Yuh bitness Countries tend to reduce birth rate naturally as they become more developed. Some African countries have birth rates of around 4-5 while the UK and other developed countries have birth rates of 2 or so.

    • Youtubers rule Youtube says:

      Nunna Yuh bitness only 113k people are dead

    • Youtubers rule Youtube says:

      TheDropdeadZed nigeria
      mexico and india have to slow down

    • Craken, The says:

      Sure China itself became rich, but what about the thousands of sweatshop workers that worked their asses off to make it rich? What do they get? Nothing. The Chinese government couldn’t care less what happens to its lower class citizens, as long as there’s money involved.

  18. David Ha says:

    I went to Japan, China and Italy over the last couple of years.

    Back to United States….

  19. Matthew Tikiob says:

    There’s a reason that all throughout history, civilizations have burned books. Read into [the] “Amusing Ourselves to Death” Wikipedia page. Relevant material as quoted from the page is as follows, “…a particular medium can only sustain a particular level of ideas. Thus rational argument, integral to print typography, is militated against by the medium of television for this reason. Owing to this shortcoming, politics and religion are diluted, and “news of the day” becomes a packaged commodity. Television de-emphasises the quality of information in favor of satisfying the far-reaching needs of entertainment, by which information is encumbered and to which it is subordinate…He contends that ‘television is altering the meaning of ‘being informed’ by creating a species of information that might properly be called disinformation—misplaced, irrelevant, fragmented or superficial information that creates the illusion of knowing something but which in fact leads one away from knowing’.” The book’s premise is centered around, more or less of what Aldous Huxley’s book “Brave New World” focuses on as well, in that we are oppressed because of our addiction to amusement. I’m not throwing around conspiracies because while they may/may not be true, oftentimes they’re baseless claims—why they’re called conspiracies to begin with. But I think that there’s a reason that China has created TikTok—it’s a GSE by the way. [No need to read books when citizens don’t want to read the books]. Posts get taken down arbitrarily, the main page is composed of revealing girls and interesting material, et cetera. It’s a strange platform to say the least composed of content that is inexpressive—you just dance to some song. Meanwhile, Twitter users are rewarded [in the form of likes and retweets] for the scantness and radicalness of their statements. There’s no actual understanding of really anything that they’re typing and publicizing. Worse yet, it’s that they don’t even know that they don’t know what they’re saying. Like getting mad at the burning of Amazon rainforests or getting mad at Kim K. for not giving up her estate to helping the causes she’s promoting—I would be willing to bet Amazon rainforest is still burning, the mainstream media is just focusing on what people want to hear with regards to current events. Donating is not a means to an end because the burning of the forest is done for economic gain, and just tweeting about it is adhering to your ignorance not realizing that Brazil is a sovereign state. It doesn’t actually have to listen to anyone. A pragmatic solution would be maybe to try and lobby your district’s representative to propose/favor legislation that would create import taxes on materials from Brazil that are the causes of the deforestation to begin with. Sensationalism and yellow journalism are really exacerbating our problems and creating these populist candidates—see Trump and Sanders and Warren. And the “news” you watch? The media isn’t some carefully constructed ploy—it just supplies what we demand. Really, our candidates and news are just manifestations of the citizens. If no one watched CNN/Fox, they would either die, or cater their material to more informed audiences. There is an incentive to profit [alike any other corporation], so it has to supply specific types of information that will draw the biggest audiences—aka entertainment. If people wanted to actually educate themselves on the stimulus bill for example, rather than listening to convenient interpretations of it, they could just search through google [the] Families First Corona Response Act. While western civilization favors individualism [Brave New World], eastern civilization is falling into collectivism [1984].

  20. Ben Lewis says:

    “Probably” eventually Earth Vs Moon Vs Mars etc.etc.

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