Readers of this journal undoubtedly acquire most business from the automotive and aerospace sectors of the U.S. economy. During their lifetime, readers have experienced increasing competition from Asia, especially China. So, let’s take a special look at this part of our changing world.
According to a McKinsey & Company report, China’s economy is increasingly diverse and volatile. It is expected to exceed $11 trillion in 2016 with GDP annual growth of 6% (others say 6.5%), the slowest rate since the 1990s. This year’s 13th “Five Year Plan” recognizes (and is based in part on) lower interest and exchange rates versus the dollar. Recent years have shown increasing labor and capital productivity that will continue, leading to changes in manufacturing and a more competitive economy.