Advantage of upgrading

Even though its demographic dividend is coming to an end, China should not undervalue its manufacturing

Recent statistics published by the National Bureau of Statistics indicate that China's working-age population decreased by 3.45 million during 2012. This was the first decline in decades, and it has caused widespread concern that the country's demographic dividend is coming to an end.

The end of the country's decades-long demographic dividend will undoubtedly have enormous repercussions for China's manufacturing sector, whose incredible achievements can be largely attributed to the huge cost advantages it has gained from low-paid labor.