Chinese Performance In Textile Sector – Will It Last?
The performance of China in the textile sectors often stated as proof of how the Chinese human resource model can take over the world. China has used the large supply of manpower to simply overwhelm the competition with high productivity and low costs. One advantage of relying on a large pool of labor force is that you can get labor at a very cheap price.
The conditions of work in Chinese factories are often criticized for being too tough. However, people are used to the tough life and are prepared to do what is necessary to enjoy a safe and secure living.
However, the Chinese model may not last for long because it is fast reaching its saturation point. More and more entrepreneurs are using business loans to acquire expensive machinery to enhance productivity. One of the most obvious disadvantages of mechanization is the fall in the labor force requirements.
The company that has completely mechanized its production system will obviously not require a large number of workers. Instead, they would appoint fewer workers to supervise the work done by all the machines. In such a scenario, the prospect of high unemployment amongst the masses will increase. Whether the political system will accept such a solution is doubtful.
Of course, one must also consider productivity. Other nations have rammed up their productivity and efficiency to compete with China. The natural advantage that China has enjoyed till date may not last for long. It will have to make a choice and it will not be an easy one.
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