The End of Cheap China, Revised and Updated: Economic and Cultural Trends That Will Disrupt the World
“REIN MASTERFULLY CAPTURES WHERE [CONSUMERS] HAVE BEEN AND WHERE THEY DREAM OF GOING.” —FORTUNE
PRAISE FOR THE END OF CHEAP CHINA
“Brilliantly written.” —Financial Times
“Rein combines elegant writing and methodical research. Years of working in China have given him access to important players. Incisive interviews with billionaires, business executives, government officials, and migrant workers guide the pulse of the narrative . . . essential reading.” —USA Today
“Engaging. Full of vivid anecdotes from Chinese billionaires to senior party officials and even prostitutes. For any foreigners thinking about doing business in the Middle Kingdom, The End of Cheap China is a good place to start.” —Reuters
“Must-read.” —Consulting Magazine
“A lively read.” —Straits Times
“An inside look.” —Industry Week
“Compelling, engaging, informative.” —The Cayman Islands Journal
“Lively, well-written book.” —South China Morning Post
“Engaging, highly readable style with real-life examples from vast catalog of China research. For good measure, Rein wedded into China’s elite, marrying the granddaughter of 1980s Politburo chairman Marshal Ye Jianying” —Asia Times
Chapter 1 Chinese Billionaires Outnumber American Ones 1
Chapter 2 Cheap Chinese Labor? Not Anymore: China’s Workers Are Demanding Better Pay and Better Conditions—And They Are Earning Them 19
Chapter 3 Stability Is the Key to Happiness: How China’s Government Thinks and Why It Acts the Way It Does 39
Chapter 4 The Modern Chinese Woman 63
Chapter 5 Why Chinese Consider Kentucky Fried Chicken Healthful: China’s Iffy Food Supply Chain Is Putting a Premium on Safe Food 85
Chapter 6 Understanding Corruption in China: What China’s Underground Sex Trade Shows about Its Government 103
Chapter 7 China’s Real Estate Sector: Boom or Bust or Something Else? 125
Chapter 8 Chinese Neo-Colonialism in Africa and the End of American Hegemony? 147
Chapter 9 China’s Educational Sector: Preventing China from Cementing Its Superpower Status 171
Chapter 10 What the End of Cheap China Means for the Rest of the World 189
SHAUN REIN is the founder and Managing Director of the China Market Research Group, a leading strategic market intelligence firm that advises Fortune 500 companies, private equity firms, and hedge funds about profiting in China. Millions read his weekly CNBC column on business in China. He regularly appears on Bloomberg TV, MSNBC, BBC, CNN, and NPR, and is often featured in The Wall Street Journal, the Financial Times, and the New York Times.
The End of Cheap China is a fun, riveting, must-read book not only for people doing business in China but for anyone interested in understanding the forces that are changing the world.
Many Americans know China for manufacturing cheap products, thanks largely to the country's vast supply of low-cost workers. But China is changing, and the glut of cheap labor that has made everyday low prices possible is drying up as the Chinese people seek not to make iPhones, but to buy them. Shaun Rein, Founder of the China Market Research Group, puts China's continuing transformation from producer to large-scale consumer - a process that is farther along than most economists think - under the microscope, examining eight megatrends that are catalyzing change in China and posing threats to Americans' consumption-driven way of life.
Rein takes an engaging and informative approach to examining the extraordinary changes taking place across all levels of Chinese society, talking to everyone from Chinese billionaires and senior government officials to poor migrant workers and even prostitutes. He draws on personal stories and experiences from living in China since the 1990s as well as hard economic data. Each chapter focuses on a different aspect of China's transformation, from fast-improving Chinese companies to confident, optimistic Chinese women to the role of China's government, and at the end breaks down key lessons for readers to take away.
The End of Cheap China shows:
- How rising labor and real estate costs are forcing manufacturers of cheap Chinese products to close, relocate, or move up the value stream
- How a restructuring economy moving away from exports to domestic consumption, and rising incomes will create opportunities for foreign brands to sell products in China rather than just producing there
- How Chinese consumption will build pressure on the global commodities markets, causing both inflation and friction with other nations
- How China's economic transformation spells the end of cheap consumption for Americans
China's days as a low cost production center are numbered. The End of Cheap China exposes the end of America's consumerist way of life and gives clear advice on how companies can succeed in the new world order.