Economic shift creates opportunities for others

Added On October 9, 2017

Ratings agency Fitch said that China's pursuit of high-end manufacturing and relocation of labor-intensive factories will generate opportunities for other emerging markets in Asia.
Fitch said Asia's "frontier" emerging markets will benefit from industrial transfers, but noted preconditions, including a sound business environment and political stability.
It reported that China's rising wages, higher land costs and real exchange rate appreciation over the past decade have reflected policy efforts to rebalance the economy and raise living standards.
Fitch said only countries offering a workable business environment and relative macroeconomic and political stability can make the most of opportunities stemming from the shift in China's development strategy.
It noted that some emerging markets should first overcome hurdles including security risks, poor infrastructure and immature market systems.