This new security situation, the ongoing reduction in tariffs and the relative low cost of labor force will be translated into an increase in foreign investment in sectors such as gold and coal mining, oil exploration and manufacturing, to name a few.
"But I think the third thing is China has matured to a point where it is no longer a low cost center of labor ... in cutting edge businesses, it wants to really develop its own brand and its own next generation of technology, to walk into the fight with your own swords by investing in the next Google, the next Apple, " Law said.
China will continue to be a source of low-cost labor because there is a large pool of labor, including young women that need to be employed.
As for Indonesia, it holds a pool of low cost labor as well as natural resources like coal.
"We built phones in La Jolla--the low-cost labor capital of the world!"
The question of temporary workers has traditionally produced a stark divide between business and labor, with business seeking a large, low-cost supply of workers, and labor opposed to any guest-worker program that could threaten American laborers and produce questionable working conditions.
And the presence of low-cost labor makes the countries attractive manufacturing locations for companies in Western Europe.
While the past approach was to use low-cost labor in China, the new factories, many of which are managed by outsiders, use increasing levels of automation, which will change the employment patterns in China.
Short of an about-face in global monetary policy, the near-halving of Western clothing and footwear prices since 1989, enabled by low-cost Asian labor and plant, is going to struggle to keep deflating.
But labor activists say the same problems are rampant in low-cost Asian countries, which produce most of the world's clothing.
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