The second McKinsey report I’d like to point you to is titled, “China’s Looming Talent Shortage”.
This six-page report details the results of interviews with 83 HR professionals and other sources in evaluating the suitability, geographic dispersion and educational strengths or Chinese college graduates. One statement stands out: “world-class companies that want to hire service labor in China have difficulty reaching as much as half of the total pool of graduates”
The report also has cautionary words for those service firms wishing to establish service outsourcing operations in China. I’m not going to give away the gist of the report; however, I strongly recommend you read this and look at the table showing different countries percent of GDP going to Manufacturing, Agriculture and Services.
In Thomas Friedman’s book, The World is Flat, the author clearly sees China as the country most likely to steamroll other economies. Friedman makes a strong case for this as he shows what an authoritarian government can do when it is focused on growing its economy.
Read the McKinsey report for a super fast primer. Read Friedman’s book for the more compelling case.