Submitted by Businomics Blog

An AP story confirms what the Businomics Blog reported one day earlier: the end of “the China Price.”  (Hat tip to the China Law Blog.)

… American toy makers, who rely heavily on Chinese factories, expect prices to increase 5 to 10 percent for the 2008 holiday season, largely because of rising manufacturing costs.

Costs in China are climbing nationwide, but the greatest pain is being felt in the south, where about 14,000 Hong Kong-run factories could close in the next few months, said Polly Ko of the Economic and Trade Office in Guangdong, which neighbors Hong Kong.

Let me reiterate: this is not the end of Chinese manufacturing, or Chinese exports to the U.S.  But the low-hanging fruit has been picked.  The middle-hanging fruit will be a little more expensive to harvest.

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