Now you can call this one key validation of Buffett's increasing interest towards markets outside North America. As per reports, China has replaced the US as the world's top manufacturing nation. As per data, China now accounts for 19.8% of the world's manufacturing output, compared with the US at 19.4%.
This shows the increased competitiveness of the dragon nation and the reduced competitiveness of the world's largest economy. We see this as a fundamental shift in the global manufacturing setup, which is unlikely to be reversed in the future.
Anyways, while the US has lost out on size to China, it stands miles ahead when it comes to productivity. China's manufacturing is supported by 100 m employees. The US does it with 89% less number of employees. Now that's a huge gap that China can only dream to cover, also given its ever expanding labour force!
This shows the increased competitiveness of the dragon nation and the reduced competitiveness of the world's largest economy. We see this as a fundamental shift in the global manufacturing setup, which is unlikely to be reversed in the future.
Anyways, while the US has lost out on size to China, it stands miles ahead when it comes to productivity. China's manufacturing is supported by 100 m employees. The US does it with 89% less number of employees. Now that's a huge gap that China can only dream to cover, also given its ever expanding labour force!
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