Monday, 4 June 2012

Prospects for China’s service industry



We have seen China excel and dominate in world manufacturing. Everything you buy is made in China just as everything you bought 150 years ago was made in Birmingham. But their service sector is not so robust. This is because China has yet to go through post industrialisation and experience, as we did, the moment when no-one wants to buy your wrought iron toothbrushes any longer. What happens when a country’s manufacturing sector shrinks to a couple of sheds in Nuneaton making cups and plaques for Angling clubs and pub darts leagues? Our heavy industries that once employed millions were replaced by the service industry. Instead of churning our cars, lawn mowers, ball bearings, ships, cutlery, nails and so on, we churn out sandwiches and coffees or sit at desks making cold calls to sell insurance or questionable banking products.

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