There's A Crisis That Is Quietly Creating New Economic Superpowers...

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There's A Crisis That Is Quietly Creating New Economic Superpowers...
3,358,376 views•11 Apr 2020

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Jack Chapple
292K subscribers
As China begins to reopen its factories and return back to work, what they are returning to will not be the same…

Despite China being the worlds economic darling for the last 40 years, the balance of the worlds economic power has begun to shift to some places that you might not expect.

In fact, we are already starting to see some signs of other nations around the world, rising up in order to take away some of China’s manufacturing prowess away from them.


And who knows, we might be witnessing the creation of the next generation of economic superpowers, right infront of our very eyes.

But the reason that this is happening is a little complex. it started a few decades ago in 1970’s China when the country began shifting its economic policy away from communism, and more towards capitalism.

They soon began building specific economic zones where massive ports and factories could be built that would maximize productivity and efficiency. And once these economic zones were opened up to foreign trade and investment, China’s economy began exploding.

In the 1980’s many fortune 500 companies began having their products manufactured in China because China could make their products with a similar quality, but for a substantially lower price than if they were manufactured in the west.

And this was because of the extremely low wages that Chinese workers made, combined with other factors like tax laws and import/export efficiencies.


So all of a sudden, if a competitor chose to manufacture their products outside of China, they simply could not compete on price, which would likely have made them go out of business.

And because of this, by the 2010’s, one third of all products on the planet were manufactured in China.

Within the span of 50 years, China has turned itself around from an impoverished nation of farmers, to a nation that has the second largest economy in the world, behind the United States.

But a few strange things began happening in the past few years.

Here’s a question…what happens when a country who builds its economy based upon low labor costs, all of a sudden becomes succesful and wealthy?

In 1990, the average yearly wage from a Chinese worker was about $150 USD. By 2005, it was $2800 Dollars. In 2015, it was $8900. And as of this year, the average Chinese worker will make around $13 500 dollars.

That is a massive increase that has seen the average wage of a manufacturing worker increase by over 8500% over the last 30 years.

And what this means is that the cost of making products in China has become a lot more expensive than it used to be. Companies can’t make products for an 80% discount in China, like they used to. And because of this, we actually began to see a decline in Manufacturing in China in 2016, where for the first time in the countries modern history, their manufacturing output actually decreased by 2% during that year.


But that was just the first factor coming into play. after 2016, China once again saw modest increases in manufacturing output, until the United States imposed tariffs on imports from China. this caused a decrease in Chinese imports to the US by 7% in 2019, and forced many companies to begin looking for product sourcing in other countries.


And if that wasn’t enough, privacy concerns and tensions between China and the Western world have been on the rise ever since the country began taking over part of the worlds tech sector.

Ever since then, governments around the world have been actively trying to push Chinese technology out of their countries, while also incentivizing businesses to make their products domestically instead of China.

In fact, just last week, the departments of justice in the United States have requested that the FCC terminate China’s Telecom Authorization in the United States, citing it as a national security risk.

And all of these things, from rising labor costs, to geopolitical issues, have led us to today…and the pandemic.

You see, even though China-sourced manufacturing has been slowing down over the past decade, the country still remains the largest manufacturer in the world.

india economy. China economy. Vietnam economy. Mexico Economy. United States Economy.

Too long, End of Transcript.




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17,142 Comments
Gus Tio
Add a public comment...
Jack Chapple
Pinned by Jack Chapple
Jack Chapple
1 month ago
What do you think is going to happen with the future of manufacturing? Let me know int he comments down below! Also, again holy moly, 190k subscribers! Thank you all, i love each and every one of you ❤️❤️❤️

877

Jack Chapple

kavan gohil
kavan gohil
3 weeks ago
Other countries:
Original or duplicate

India:
Original or Chinese

1.6K


TS ONS
TS ONS
2 weeks ago
Nothing remains at the top forever. Countries will have their turns. Come and go.

244


Sudeep Das
Sudeep Das
1 week ago
2nd video that I watched where he downplays India. Like he omitted the fact that India is the largest manyfacturer of medicines in the world.

115


Subir Dhar
Subir Dhar
2 days ago
In the coming years, China will invest heavily in emerging tech like AI, Robotics etc, thereby the impact of higher labor costs will be minimized.
In essence, the cost of Chinese goods are likely to fall further, as the labor component will come down further - to a point, that many other countries will find the prices of Chinese goods too attractive to resist.

9


Don Aman
Don Aman
1 week ago
No way India wants to become the next china, It hai its own identity, It doesn't need to copy others. India will remain INDIA..🇮🇳🇮🇳🇮🇳
JAI HIND
VANDE MATARAM

76


Jaime Garcia
Jaime Garcia
1 month ago
I’m Mexican but I doubt that we’ll become a superpower with all of the corruption

3.9K


R Menon
R Menon
2 weeks ago
India also has a large presence........







..........in YouTube comment fights.

191


Dreams Come Reality
Dreams Come Reality
3 weeks ago (edited)
I think india will be a next production hub. As well as this is true fact, now the power transfer from western to Asian countries 🏃‍♂️🏃‍♂️🏃‍♂️

121


paul saha
paul saha
3 weeks ago (edited)
India : -
Population(over 75% youth force, english speaking)
Democracy(world's largest)
Lowest Interest rates for FDI in Asia(India attracted $49 billion FDI in the year 2019.)
Infrastructure(Largest road & rail network, hubs, smart-cities are being created and in the making with speed and scale)
Fastest growing large economy.
etc.
Can't see a better place in my view.
Edit 1: According to IMF, India is the only country after China which mightn't face recession due to coronavirus.

227


Anxiety Orb
Anxiety Orb
2 weeks ago
New superpower: Shows vietnam, Mexico, and India

Brazil and Indonesia: "Am i a joke to you"

134


B T
B T
4 weeks ago
He:I need more views
Me: add an image of India in the thumbnail.

976


rodney parker
rodney parker
3 weeks ago
"A country who builds it's economy upon low labor costs"

Lol...you mean America when they had FREE labor?

75


south India is the best
south India is the best
3 weeks ago
India don't want any powers
We just be like humans respect
Nature lives happily long life god😇

143


e r
e r
3 days ago
Being in the US, I say India....everytime I called customer service, the call goes to India and Jack helps me out.

18


Sourav Thakur
Sourav Thakur
2 weeks ago
जैक चप्पल बेटा Why r u showing mutilated map of my country

46


Kinjal.sharma musicworld
Kinjal.sharma musicworld
1 month ago
Kull milla ke china ki maa chudne waali he👹👹👹😚😚😚

375


Suresh Chowta
Suresh Chowta
3 weeks ago
Not sure whether the western media intentionally plays blind to India's infrastructure.

302


Kumar
Kumar
1 week ago
India is already the 5th largest economy in the world, surpassed UK & France.

30


George india
George india
2 weeks ago
India already doing good in IT business. You just showing the poor image of India rather truth. Auto , shipbuilding , pharma industries have adequate infrastructure.

16


SWDS FSS
SWDS FSS
5 days ago (edited)
India would likely end up winning out of Corona, the fact that the death rates are so low in a country of 1 billion doesn't make sense, some say its bcx of the climate but probably it also has something to do to the diets, too many vegetarians.

62


Tora Black
Tora Black
1 month ago
After this I'm all for Countries manufacturing their products domestically.

2.3K


A Type of Illustrator
A Type of Illustrator
1 week ago
This happens everytime...every western guy says India is the next super power but show slum in videos or pics.And that surely hurt us and you know what every country has their own problems.Also our govt is investing 1.5trillion dollars on Infrastructure

31