I will bite. As Chinese wages rise, certain industries would discover that it would be cheaper to move their production facilities elsewhere. Particularly into the states in the ASEAN. They will also discover it would be more profitable to sell the products produced in ASEAN to China since Chinese wages continue to rise.
As Chinese wages continue to rise, the process continues even further until China may not even need to do consumer manufacturing but simply focus on the military and service industry.
Now, it is important to note, the reason Chinese wages continue to rise is because PBOC continues to produce more money allowing Chinese citizens to earn more. So long as China's monetary supply continues to outstrip its counterparts. Then the GDP as well as per capita GDP will continue to improve.
The problem with Gordon Chang is simply because he is wrong. He thinks that manufacturing has a relationship to income and economic growth. If that were true, why do countries that produce absolutely nothing have such high GDPs per capita? Besides paper money, they do not produce anything else at all. This is a man who wrote a book about the day that China would inevitably crash. Whether its due to intellectual dishonesty or just because he is intellectually wanting, he is still wrong. He does not understand how the monetary system works. And its 2011 and the man still has the thick skin to not just admit he is an idiot.
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