It is only natural, even expected, that at some point Chinese wages will reach a level similar to that of Americans. However, I still think China has a long way to go before such levels are attained. The migrant worker population level in China is still high and could push down on rising wage levels.

In my opinion, it is hardly surprising that high-end electronics are returning to the United States since we already have the infrastructure and capital to produce such goods efficiently and with large economies of scale. This gives American companies a comparative advantage that is only bolstered further by rising wages in China.

Perhaps a paradigm shift is in order when analyzing Chinese manufacturing. There is a general tendency to assume that all of Chinese manufacturing is comparatively cheaper. However, what is true for one sector of Chinese manufacturing is not true for all; economies cannot be viewed as single entities but rather as a complex network of interacting forces with distinct parts. A Chinese worker who designs integrated circuits for computers will obviously earn more income than a factory worker in Shenzhen who assembles dolls.

In a way, this article is slightly misleading since it conveys the impression that all manufacturing in China is becoming more expensive. However, it does state that "the mainland is still hard to beat for labor-intensive products such as toys and apparel." What everyone should keep in mind when reading this article is that Chinese manufacturing cannot be viewed as one unitary entity.

What matters is that the Chinese economy is showing signs that wage levels, and consequently, the quality of life in China are improving, validating globalization's ability to change an economy for the better.

China and their economy? I pose this article as a response to the current Topic China's not so cheap anymore. In order to understand this topic better we have to ask the question why is China' not so cheap anymore? The answer is simple but hard to explain so lets see if I can give it a shot. Ripple effect is an expression that comes to mind when this question is asked. China's increasing Labor costs and inability to stabilize itself as the worlds source for cheap products as it once was is a direct result of a ripple effect caused from a failing economy thousands of miles away.
In order to discuss this topic you have to put another problem into the discussion because it is the only way to fully understand what is happening not only in China but to many other countries around the world. It is also the only way to recognize the root of problem and recognition is the key to solving. I read an article at http://www.worldfinancialwatch.com/us-economy/how-does-the-us-economy-af..., which stated in the opening paragraph, "The US dollar is used in most international transactions, so it stands to reason that anything that happens with the US economy will affect international finances in a substantial way."
The U.S. Economy's downfall has caused problems around the world China's increase in pricing is only one of many problems that has arisen from the United States Recession. You can debate the recession all day long but face facts. Americans are spending less because costs are going up; food costs, living costs, housing costs, and gas costs. That means what to China? Simple if we are not spending that much at home anymore the we definitely are not spending that much abroad save for the war effort. Economies that once depended on that money now have to generate that income by other means. A large portion of China's good were purchased from the U.S., Made in China is a famous saying in the U.S. now we can't spend that much money in China because simply put we don't have it. Now China has to do one of two things find a country our a collection of countries that can and are willing to spend that kind of money for China's products or raise prices to balance the money they are loosing.
With the U.S. economy being as unstable as it is and the dollar not being the "almighty dollar," that it used to be economies around the world are feeling the effects of the United States Turmoil. Take a look around the world how many countries are showing signs of economic unbalance. It is easy to recognize the problem but to fix it you have to recognize the root and only then make strides to fix it. Until then we will remain in a world where nothing is cheap anymore.