As China evolves, so does the global marketplaceall the way down to the consumer

The End of Cheap China is a detailed look at the rise of China, and how it will affect the global marketplace. A thorough exploration of the changes taking place in the Chinese economy, the book explains how much of the Western consumerist culture is built on the back of cheap Chinese factory labor, and warns that the era is coming to a close. Readers will learn why the cheap labor pool is beginning to dry up, what that means for the rest of the world, and how businesses will have to adapt to stay afloat. This updated second edition includes new statistics, the latest news on the Chinese economy, and additional case studies that illustrate the ways in which China has developedinto a brand-new potential market.

China's social, political, and economic evolution will affect the entire world. Rising incomes are building pressure on the global commodities market, inflation is only just beginning, and consumers are experiencing sticker shock as cheap labor is becoming harder to find.The End of Cheap China explains the factors driving these changes, the impact that can be expected, and the opportunities that constitute a major silver lining for businesses panicking about the coming paradigm shift. Readers will:

Discover the eight mega-trends changing China, and how far the ripples will spreadLearn how rising costs in China will dramatically affect the American way of lifeExamine the rise of Chinese consumption, and the friction it engendersConsider the changes businesses must make to remain profitable in a changing world

The global marketplace is evolving, and it's up to businesses to keep pace with the changes.The End of Cheap China provides a roadmap for navigating these changes, helping businesses lead the charge toward a more affluent global economy.

SHAUN REIN is the founder and Managing Director of the China Market Research Group, a leading strategic market intelligence firm that advises Fortune 500 companies, private equity firms, and hedge funds about profiting in China. Millions read his weekly CNBC column on business in China. He regularly appears on Bloomberg TV, CNBC, CBS News, CNN, and NPR, and is often featured in theWall Street Journal, theEconomist, theFinancial Times, Bloomberg.com, and theNew York Times.

Prologue ix

Chapter 1 Chinese Billionaires Outnumber American Ones 1

Chapter 2 Cheap Chinese Labor? Not Anymore: Chinas Workers Are Demanding Better Pay and Better ConditionsAnd They Are Earning Them 19

Chapter 3 Stability Is the Key to Happiness: How Chinas Government Thinks and Why It Acts the Way It Does 39

Chapter 4 The Modern Chinese Woman 63

Chapter 5 Why Chinese Consider Kentucky Fried Chicken Healthful: Chinas Iffy Food Supply Chain Is Putting a Premium on Safe Food 85

Chapter 6 Understanding Corruption in China: What Chinas Underground Sex Trade Shows about Its Government 103

Chapter 7 Chinas Real Estate Sector: Boom or Bust or Something Else? 125

Chapter 8 Chinese Neo-Colonialism in Africa and the End of American Hegemony? 147

Chapter 9 Chinas Educational Sector: Preventing China from Cementing Its Superpower Status 171

Chapter 10 What the End of Cheap China Means for the Rest of the World 189

Epilogue 203

Postscript 205

Acknowledgments 209

Index 211