16 countries that are going to become a “New China”

China is in the process of changing the vector of development, focusing on the production of the more expensive and high-quality goods. A country with a billion population has reached a level of development at which it makes a transition from quantitative to qualitative index. China ceases to be a business “greenhouse” for foreign companies. Who will replace the tireless producer of most of the goods in the world?

This is proved by the following facts:

1. The number of working-age population in China reached its peak and now it’s decreasing. From 1980 to 2015, China was fully provided with labor force. However, today the United Nations suggests that the number of working-age Chinese will be reduced by 212 million people by 2050. Out of the fear to remain without “working hands” (even though that is difficult to imagine in China), Chinese families were once again allowed to have more than one child.

2. The salaries of Chinese workers are constantly increasing. In recent decades, the rate of wage growth exceeded 10%. At present, the minimum salary in China is $325.

3. In China, tariffs for public utilities, land rental and storage facilities are growing. For example, electricity in China increased in price 5 times in three years. Now China's electricity tariffs are higher than in Laos, India, Thailand, and Vietnam. Therefore, it’s becoming more and more expensive to do business in China.

There is no country in the world that is able to independently replace China in regards to production. Researchers from Stratfor argued that 16 countries are willing to share the role of the world leader in the number of low-cost export-oriented enterprises.

The list includes countries with the emerging economies, where most people live below the poverty line. The researchers also took into account the countries in which foreign companies have already placed their first subdivisions.

Arguments in favor of the fact that these countries can replace China:

1. An increasing number of enterprises that are engaged in tailoring, shoes, electronics and mobile devices assembly. Exactly from these industries China began the way from an agricultural country to an industrial giant. These companies do not need highly skilled workers, and the lack of the equipment is replaced by a large number of the workforce.

2. Salaries of the workers are lower than in China and Shanghai.

3. The total number of the population in these countries is about 1 billion people, which is slightly less than the population of China.Each of these 16 countries has its individual features that are able to attract foreign investors.

1. It shares borders with the United States – the largest importer in the world.

2. It takes 14th place in the world in terms of the population and 11th place in terms of the economy size.

3. New reforms have been introduced in Mexico for the last several years to improve business environment.

1. It has the most inexpensive labor force in Central America.

2. In 2014, the investment share in Nicaragua was 26.71% of GDP, which is higher than the average rates in the world.

1. Direct foreign investment increased by 52% from 2013 to 2014.

2. The Dominican Republic signed a free trade agreement with the United States.

3. The minimum wage is $162 per month.

1. The deepest port on the Pacific coast of South America is located in Peru. It can accept large trading vessels. 

2. The country has signed free trade agreements with China, Japan, the US and EU.

1. Ethiopia's GDP increased by almost 90% from 2010 to 2014.

2. Since 2010, the export of textile and shoe industry is constantly growing.

3. From 2009 to 2013, direct foreign investment increased by 400%.

Mobile phones and accessories to them are the second largest group of export goods in the country.

A large number of inexpensive labor force: the population of the country is 47 million people, and the average wage is less than $44.

1. Direct foreign investment increased 3 times from 2013 to 2014.

2. Samsung Electronics has opened assembly plant of printers, laptops and televisions in the Kenyan capital Nairobi.

1. It has favorable geopolitical location at the crossroads of major trade corridors of the Indian Ocean.

2. The minimum wage is less than $60.

1. Developed textile industry.

2. The minimum wage is less than $40.

For 50 years, Myanmar's population has increased more than 2 times – from 21 million people. In 1960, it increased up to 55 million people. In 2016, most of the country's population is of the working age. Adult literacy rate in Myanmar is higher than in neighboring Laos, Bangladesh, and Cambodia.

1. The growth rate of foreign direct investments was 45% from 2013 to 2014.

2. Due to its geographical position, Laos has good access to Chinese market.

1. About 70% of the population is of the working age.

2. The minimum wage is 30% lower than in China.

The minimum wage in the garment industry is $80, which is 4 times less than in China.

1. The busiest commercial sea lanes are located around the Philippines.

2. The country's population is 101 million people, 60% of them are of the working age.

1. The proximity to consumer markets in China, India, Japan, and South Korea.

2. Direct foreign investment increased by 43% from 2013 to 2014.

It is too early to state that investors are fleeing from China. Chinese consumer market is growing, and this means that more and more Chinese goods never leave the country. Nevertheless, businessmen have already understood that in the modern world there are countries that are more profitable to place industrial enterprises compared to China. And this fact is already affecting the world economy.