China a High Cost Producer?

China has a "problem," caused by its success. Before the recession it was clearly the low cost provider of goods among the largest nations of the world.

It has only been in the last year or so that China’s cost of labor has spiked up, notes 247wallstreet analyst Doug McIntyre. As did the Asian Tigers and Japan before it, China is on the way to becoming a country that will progressively move up the value chain in its hardware businesses, for example.

The country is the victim of its own success as Japan was, in a sense. It has a large middle class, rising wage rates and will have to create an internal market for its goods, rather than focusing on exporting.

China Becomes The High Cost Provider Of Goods – 24/7 Wall St.