China Herald: Costly China starts feeling the pain in manufacturing

Two years after author Shaun Rein published his book The End of Cheap China, the country´s manufacturers start feeling the pain from export moving to cheaper countries. This painful adjustment might take another 3-5 years, he tells Bloomberg.

Bloomberg:

Rising wages and business costs that include compliance with environmental regulations are squeezing manufacturers’ margins, said Shaun Rein, author of “The End of Cheap China: Economic and Cultural Trends That Will Disrupt the World.”...

The slowdown in growth, along with rising wages, means manufacturers still face a three-to-five-year adjustment that will cause “serious pain” and “economic dislocation” in manufacturing provinces including Zhejiang and Guangdong, said Rein, managing director of China Market Research Group in Shanghai.

More in Bloomberg.

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