Among the observations:
- "China, along with the other emerging giants, India, Brazil and the former Soviet Union, has effectively doubled the global labor force, hugely boosting the world's potential output and hence its future prosperity." -- note how this tie with this observation of "re-introducing labor to replace capex"
- "China's growth rate is not exceptional compared with previous or current emerging economies in Asia, but China is having a more dramatic effect on the world economy because of two factors: not only does it have a huge, cheap workforce, but its economy is also unusually open to trade. As a result, China's development is not just a powerful driver of global growth; its impact on other economies is also far more pervasive (see article)."
- "Trying to halt China's growth through protectionist measures, as many American congressmen would like to do, would be a disaster, for it would close off a powerful source of future global prosperity. "
- "Americans like to slap the “made in China” label on their huge trade deficit. Yet not only is China's forecast current-account surplus of around $100 billion this year only a fraction of America's likely deficit of $800 billion, but, as chart 1 shows, most of the increase in America's trade deficit has come from outside China.
- "The entry of China's vast army of cheap workers into the international system of production and trade has reduced the bargaining power of workers in developed economies...In America, the pace of growth in real wages has been unusually weak in recent years...this is America's weakest recovery for decades...In most developed countries, wages as a proportion of total national income are currently close to their lowest level for decades."
- "China's emergence into the world economy has made labour relatively abundant and capital relatively scarce, and so the relative return to capital has risen."