AmCham: Rising costs driving some manufacturers from China

Rising costs are forcing some US manufacturing firms to leave China, AFP reported, citing a white paper from the American Chamber of Commerce (AmCham) in China. "For manufacturers, the seemingly endless supply of low-cost unskilled labour may be approaching its limits," AmCham chairman Norwell Coquillard told reporters at a briefing to launch the annual white paper. More than two-thirds of surveyed AmCham member companies said that rising costs were causing China to lose some of its competitive advantage in global markets. The white paper cited rising salaries and wages, changes in raw material prices, tax expenses, real estate cost inflation and price pressures from competition and major customers as having the biggest financial impact on US firms in China last year.