Global Company Starts Leaving as "The End of Cheap labor in China begins"

A professor in Chinese labor Caif Fang estimates that China in on the stage of rapid decrease in the labour force, this will greatly affect the overall annual growth rate, with a 1.5 percentage decrease this will continue to rise during the 2016-2020.

The demographic dividend of china will end and the fast economic growth of the country in the last three decades has been led by exports in which this is dependent on its cheap and abundant labor supply.

A fast turn down of labour force will be the origin of shortages and a rapid raise in wages. Such changes will deteriorate the competitiveness on export industries of China in the worldwide market, affecting economic development.

China should undertake a dramatic economic reformation in dealing with this problem.

The rapid process of ageing will bring political difficulties. The authenticity of Chinese communist as the country’s ruling group since the Tiananmen massacre in 1989 has been its basis on maintaining rapid economic growth.

China’s economic slowdown at the appointed time challenges to party's authenticity.