China is facing huge industrial threats in the coming days. Many of the companies which have their production base in China are preferring to shift their production location from China to India. If this happens, not only will the economy of China receive a setback but also a huge number of Chinese people will lose their jobs. The rivalry between the two countries based on the economy is also set to rise. This is a matter of serious concern for the people of China. A India is on a growth trail in world economy, if the thing continues in this fashion, India will rise further up in the world economy.
An imbalance in the social system is looming large
The telecom manufacturing company Huawei which is basically Chinese in origin has already commenced production in India. This has led to the feeling of threat amongst other industry workers as they are seeing the chances of other companies too migrate to India to set up manufacturing facilities. The Chinese media too has expressed its concern seeing the nature of eventualities. With more number of companies shifting to India, there will be higher chances of greater number of job cuts in China. Job cuts and unemployment will create an imbalance into the social system of China. Several other threats also have chances to crop up.
Tackling the huge unemployment to be an issue for China
Since, apart from many mobile manufacturing companies in China, several companies are there which manufacture the parts of mobile phones, the employees in these companies too will lose their jobs if the manufacturing part is shifted to India. This will be a huge chunk of workforce who stands in the danger of imminent job loss. The exact number of people who are associated with this industry’s production chain is totally unknown. But, something needs to be done in China to prevent this huge mass of people in losing their jobs.
Continuous improvement in technology is the only solution
China has a stiff challenge ahead in the coming days. Either some alternate job source needs to be created for the displaced workers or the shifting of the manufacturing bases needs to be arrested. China has to improve its production quality so that the manufacturing can be retained. It also has to boost up the quality standards of its products with further innovation so that the products do not face a slump in demand. Continuous innovation has to be carried out so that the Chinese products are not overtaken by the rivals in terms of technology.
