world-economy

China's Manufacturing Dominance Reshapes Asian Supply Chains

China's manufacturing success threatens to disrupt the traditional pattern of industrial migration across East Asia. The model, described by Japanese economist Akamatsu Kaname, emerged from Japan's textile industry in the 1920s and 1930s. As Japan prospered, labor-intensive production migrated to lower-wage neighbors. South Korea and Taiwan benefited from this progression as Japan's wages rose. China now presents a different challenge. The country maintains competitive advantages across multiple sectors simultaneously, leaving limited space for follower nations to establish footholds in labor-intensive industries. Economists question whether the established pathway for economic advancement remains viable under current market conditions.