The Evolution of China – Part 1: A Growing Middle Class

Recently, our president Des Sinclair traveled to China to inspect the facilities of potential Construction commercialDeeco Metals manufacturers (for more information on this vetting process, read our “Vetting Our Manufacturers” blog post). While he was there, he made some keen observations about the country. There’s a lot of talk about the role Chinese manufacturing plays in the global market, but not much talk about the country itself. We’d like to share Des’ observations with you in the hopes of painting a clearer picture.

China is a country that’s growing, and growing fast—sometimes at a rate that outpaces the country’s ability to keep up with that growth. Since Des’ last visit, the number of commuters on bicycles has greatly declined, with a corresponding increase in automobile usage. This is due in large part to a growing middle class. As more and more citizens start their own businesses with local government assistance and subsidies, both the middle class and the wealthy grow in numbers. Right now, this abundance of automobiles has resulted in frenetic driving practices, but everyone seems to have adjusted to the frenzy and no one Constrution Residencegets angry—a practice Des has coined “passive aggressive driving.”

Drivers also face challenges from less than ideal roadways, a symptom of a larger infrastructure issue. As the population moves into the cities, the hurried construction of roads and buildings has resulted in many cases in less than ideal construction quality. In addition to rough roads, numerous buildings showed foundational cracks and flaking plaster. Commercial and residential construction is actually outpacing the rate at which owners can find occupants for their buildings, leading the government to contemplate instituting a tax on these owners to curb the rate of construction large buildingconstruction. As is well documented in the media, pollution continues to be a pressing issue as well.

All of this growth, while hurried, is building towards an impressive future. Check back in a couple of weeks for Part 2 of our series, where we talk about the changes affecting Chinese manufacturing, and Des’ prediction on where China is heading.

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