From the early 1980s, China's economy transformed from a medieval socialist economy to a vibrant and dynamic manufacturing economy based on state-of-the-art automated production technology.
The low cost of Chinese-made products was the result of low production costs that included low wages. In more recent years, Chinese hourly production wages have risen to levels approaching hourly production wages in several other nations that include Brazil and India. While Chinese textile products still prevail, clothing factories in nations such as Bangladesh, India and Pakistan have made significant inroads into China’s international clothing market.
China versus India
India’s steel industry produces cost-competitive stainless steel that is used in a variety of household products that have been exported internationally, competing with Chinese made stainless steel household products. However, recent changes in India’s domestic fiscal policy, includes elimination of the widely circulated 500-rupee and 1000-rupees notes on which majority of Indian small businesses depended. That policy could adversely impact India’s entrepreneurial innovation and invention sector.
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