Report: Chinese Wages Now Higher Than In Brazil, Argentina And Mexico

[TaiShang]

An indication that China has a chance to escape middle income trap due to low value-added production remaining persistent.

Yet, the benchmark is not a desirable one. Like @Shotgunner51 says, the true benchmark for wage levels would be our Northeast Asian peers. Of course, this means, China industrial manufacturing achieves further sophistication ( as @Viet implies ) and the share of services as percentage of GDP (along with urbanization) grows further.

 

[AndrewJin]

An indication that China has a chance to escape middle income trap due to low value-added production remaining persistent.

Yet, the benchmark is not a desirable one. Like @Shotgunner51 says, the true benchmark for wage levels would be our Northeast Asian peers. Of course, this means, China industrial manufacturing achieves further sophistication ( as @Viet implies ) and the share of services as percentage of GDP (along with urbanization) grows further.

Many provinces in China are no longer in the middle income bracket.
Nearly all big cities are in the high-income bracket.
Continuous urbanisation and engagement with the new technological revolution will eventually lead all provinces up to the higher league.

 

[TaiShang]

Many provinces in China are no longer in the middle income bracket.
Nearly all big cities are in the high-income bracket.
Continuous urbanisation and engagement with the new technological revolution will eventually lead all provinces up to the higher league.

I think the entire nation will achieve high income status by 2020.

Then the next phase of China's development and rejuvenation will start.

 

[AndrewJin]

I think the entire nation will achieve high income status by 2020.

Then the next phase of China's development and rejuvenation will start.

All focus on China's poorest provinces like Guizhou, Yunnan and Guangxi.
Promised more investment into civil facilities and infrastructure should be ensured.

Liuzhou City, Guangxi Autonomous Region

Chongzuo-Jingxi Provincial Expressway near Guangxi-Vietnam border

 

[Viet]

I think the entire nation will achieve high income status by 2020.

Then the next phase of China's development and rejuvenation will start.

2020 is a very optimistic scenario. that is just 3-4 years to go. $12,000 GDP per capita is the goal.

 

[AViet]

The definition of middle-income trap is quite stupid and Euro-centric.

Many countries in the world have high GDP per capita thank to rich natural resource, low population density or good geo-politic conditions. But in education, technology level and many other aspects of a modern society, they are much like middle income, or even low income countries. Even they have passed the middle-income trap, they are still backward and can still fall back easily to middle or even low-income status. Equatorian Guinea, which was just some years ago, had GDP per capita on par with the like of Italy, is just an example. In Europe, Greece is another one. If a Grexit happens, within 2-3 years, the country would surely fall back to middle income status.

In the meantime, some countries, especially North East Asian, used to have very low GDP per capita, but their society structure, work discipline, education quality, were still ahead of high-income countries. I would say they are low-income developed countries. One typical example is North Korea. In many aspects, the country look just like Germany after WWII. Highly industrialized, disciplined, extremely clean, extremely hard-working, high quality workforce, but poor. If they open their country, within 30-50 years, we would see another South Korea or Taiwan.

 

[lonelyman]

The definition of middle-income trap is quite stupid and Euro-centric.

Many countries in the world have high GDP per capita thank to rich natural resource, low population density or good geo-politic conditions. But in education, technology level and many other aspects of a modern society, they are much like middle income, or even low income countries. Even they have passed the middle-income trap, they are still backward and can still fall back easily to middle or even low-income status. Equatorian Guinea, which was just some years ago, had GDP per capita on par with the like of Italy, is just an example. In Europe, Greece is another one. If a Grexit happens, within 2-3 years, the country would surely fall back to middle income status.

In the meantime, some countries, especially North East Asian, used to have very low GDP per capita, but their society structure, work discipline, education quality, were still ahead of high-income countries. I would say they are low-income developed countries. One typical example is North Korea. In many aspects, the country look just like Germany after WWII. Highly industrialized, disciplined, extremely clean, extremely hard-working, high quality workforce, but poor. If they open their country, within 30-50 years, we would see another South Korea or Taiwan.

GDP per capita, is very flawed measuring the overall picture of a country. For example, China, still a "developing" country, has much better public transportation infrastructure than most so-called "developed" countries. Which country has 22,000 km high speed rails and cheap price, $60 to ride 1300 KM from Beijing to Shanghai, in 4 and half hours?

 

[Bussard Ramjet]

Logistics cost in China is still not low enough compared to many competitive countries.
Modernisation of logistics in every province is paramount，especially in the resources-rich West

Totally true. Logistics Cost in China are still high compared to developed countries.

GDP per capita, is very flawed measuring the overall picture of a country. For example, China, still a "developing" country, has much better public transportation infrastructure than most so-called "developed" countries. Which country has 22,000 high speed rails and cheap price, $60 to ride 1300 KM from Beijing to Shanghai, in 4 and half hours?

Incorrect. Only High Speed Railway doesn't make infrastructure.

In fact, High Speed Railway's need can be totally passed over with proper highway connectivity, and civil aviation.

Also, a distance like Beijing to Shanghai can be covered in most places at around that price, with civil aviation, in maximum of 2 hours.

 

[lonelyman]

Incorrect. Only High Speed Railway doesn't make infrastructure.

In fact, High Speed Railway's need can be totally passed over with proper highway connectivity, and civil aviation.

Also, a distance like Beijing to Shanghai can be covered in most places at around that price, with civil aviation, in maximum of 2 hours.

Do you think in China we don't have world class highways, airports, seaports, telecoms, civic aviation, etc? I can be certain you have never ride on high speed rail before, once you did, you never want to do flight again except maybe for over 2000 KM trip.

Just a simple hint, trip to airport at A, trip from airport B, security check and all hassle, not punctual, delay, plus some needed safety margin time? Make that 2 hours become at least 5 hours, compared to take metro to railway station plus plenty of leg room and walking around and off?

Price 60$? I doubt it? At least $150 - $200 in USA plus all fees.

 

[Bussard Ramjet]

security check and all hassle, not punctual, delay, plus some needed safety margin time

punctuality and delays are the result of China's laws. It doesn't happen in US and Europe as much.

Sometimes I wonder, are the laws deliberately framed such way to make the HSR competitive?

Price 60$? I doubt it? At least $150 - $200 in USA plus all fees.

What must also be kept in mind is that civil aviation is a profitable business, through and through.

Which means that the airlines are profitable, the airports are profitable etc.

In the case of China's HSR, only 1 or 2 lines are profitable operationally. Which means that the lines profitable operationally don't include the costs of building the tracks and railway stations, and acquiring land.

Even after that, I just checked, you are getting Sanfrancisco - NY flights at around 200-250 US dollars. And the length of SF-NY is greater than 2 times compared to BJ-SH.

 

[lonelyman]

punctuality and delays are the result of China's laws. It doesn't happen in US and Europe as much.

Sometimes I wonder, are the laws deliberately framed such way to make the HSR competitive?



What must also be kept in mind is that civil aviation is a profitable business, through and through.

Which means that the airlines are profitable, the airports are profitable etc.

In the case of China's HSR, only 1 or 2 lines are profitable operationally. Which means that the lines profitable operationally don't include the costs of building the tracks and railway stations, and acquiring land.

Even after that, I just checked, you are getting Sanfrancisco - NY flights at around 200-250 US dollars. And the length of SF-NY is greater than 2 times compared to BJ-SH.

Did you even check facts before opening mouth.

https://qz.com/322486/americas-airlines-are-the-least-punctual-on-earth/
America’s airlines are the least punctual on earth

200-250 US dollars?
I just searched,
https://www.onetravel.com/fpnext/Air/Listing/s/1
For nonstop at least $319 and plus taxes and fees? That makes $400 plus, on top of taxis from and to both airports.

If you want to be a cheapskate spending $210, by doing 3 AM red eye flight and with one stop in the middle wasting another another 4 hours enjoying airport food, be my guest, genius.

We deliberately delay the airlines to give HSR competitive advantage, I admire your wild imagination.

Profitability is on the rise with more usage and higher fees, don't you worry for us, Mr. Ramjet

 

[Bussard Ramjet]

https://qz.com/322486/americas-airlines-are-the-least-punctual-on-earth/
America’s airlines are the least punctual on earth

Com'on man, read the article.

The headline is just clickbait.

By the headline they mean, that America's flights are less punctual than Europeans.

You can even see the data. Of the top 20 most punctual flights, none are in China.

http://shanghaiist.com/2015/03/21/china_airports_and_airlines_worst_in_world_for_delays.php

 

[GS Zhou]

haha, a bull**it blabla on high speed train network again.

• High speed train is NOT built for the two end-destinations only. I.e. SH-BJ line is not for SH-BJ tour only. For example, Xuzhou, which located in the mid of SH-BJ line, if a Xuzhou resident needs to go to Beijing or Shanghai, which choice is better? A 600km flight? A 6 hour coach? Or high speed train?
• We all know how busy the conventional railway line in China is. Historically, most of the capacity of the conventional line is supplied to passenger transportation purpose, i.e. few capacity left for cargo transportation. But with the expansion of HST network, the conventional line could reserve more capacity for cargo. For example, LTT (零担物流, Less than truckload) volume via railway in 2014 was 5,467 million ton-km; in 2015 grows to 26,711 million ton-km. The explosive growth is almost fully attributed to the capacity liberated by HST.
• HST is made by China, i.e. the money on HST investment is kept in China!! But if we rely on aviation, the money goes to foreign nations!! For example, in 2015, the passenger traffic via HST is 961 million passengers; the traffic via aviation is 436 million passengers. If no HST in China, we need to double our plane fleet to satisfy the demand. How much we need to pay to Airbus or Boeing to double the aviation size?? HST operation is in loss now, that's true. But at least the HST money are kept in China, far better than paying them to foreign nations.

 

[AndrewJin]

haha, a bull**it blabla on high speed train network again.

• High speed train is NOT built for the two end-destinations only. I.e. SH-BJ line is not for SH-BJ tour only. For example, Xuzhou, which located in the mid of SH-BJ line, if a Xuzhou resident needs to go to Beijing or Shanghai, which choice is better? A 600km flight? A 6 hour coach? Or high speed train?
• We all know how busy the conventional railway line in China is. Historically, most of the capacity of the conventional line is supplied to passenger transportation purpose, i.e. few capacity left for cargo transportation. But with the expansion of HST network, the conventional line could reserve more capacity for cargo. For example, LTT (零担物流, Less than truckload) volume via railway in 2014 was 5,467 million ton-km; in 2015 grows to 26,711 million ton-km. The explosive growth is almost fully attributed to the capacity liberated by HST.
• HST is made by China, i.e. the money on HST investment is kept in China!! But if we rely on aviation, the money goes to foreign nations!! For example, in 2015, the passenger traffic via HST is 961 million passengers; the traffic via aviation is 436 million passengers. If no HST in China, we need to double our plane fleet to satisfy the demand. How much we need to pay to Airbus or Boeing to double the aviation size?? HST operation is in loss now, that's true. But at least the HST money are kept in China, far better than paying them to foreign nations.

Spot on.
HSR is the most appropriate transport choice for China, providing fast transport from one city to another stopping every 20-30km. Air traffic is wasteful and most people in the countryside cannot reallly enjoy but a village can have a HSR station.

 

[GS Zhou]

Spot on.
HSR is the most appropriate transport choice for China, providing fast transport from one city to another stopping every 20-30km. Air traffic is wasteful and most people in the countryside cannot reallly enjoy but a village can have a HSR station.

Agree. That's why almost all Chinese people, even those who once held the strongest distrust on HSR, are now convinced by the convenience and comforts brought by the expanding HSR network.

What's ridiculous is, our chemical engineering student in this thread dares to claim that "High Speed Railway's need can be totally passed over with proper highway connectivity, and civil aviation. "

"Totally", what a bold claim!! This funny guy seems to have no idea about how tired a long-distance coach tour/or private car driving could be; he also has no clue about how expensive a "proper" civil aviation system could be!!