How the US Shale Gas Boom Could Derail China
Morgan Stanley said in a research note on Wednesday.
With the help of cheap energy, manufacturing will pick up and move down the ladder to capturing the production of less "sophisticated" goods (computers, fabricated metals and automobiles) currently manufactured in emerging nations. As a result, the United States will likely compete with emerging markets for market share rather than being a consumer, Morgan Stanley said.
"As the manufacturing renaissance takes hold in the U.S., the move down the value-added ladder in the U.S. is likely to clash with China's need to further increase the sophistication of its manufacturing base," it said.