China faces vast restructuring

Globalization, technological change and shifting demands compel fixes in economy

In economies exposed to international competition, economic restructuring is a continuous process driven by globalization, technological change and shifts in demand.

Globalization can wipe out the competitiveness of local suppliers due to wage increases or rising transaction costs in finance and transport. Technological change can wipe out the competitiveness of local suppliers who continue to rely on outdated production techniques or miss the shift to new product innovation.