Manufacturing competitiveness wanes

Foreign Trade

23 March 2006

The competitive advantages of China's manufacturing industries are weakening, the Financial Times reported, citing one of the world's largest trade sourcing companies. Li & Fung Group of Hong Kong said price rises were affecting the China-US and China-EU supply chains. �China's costs are all going up,� William Fung said. �It is no longer the most cost-effective country in the region�Anything [sourced] from China has a higher inflation component than from other places around the world.� Increases in labor costs, the revaluation of the yuan and rises in energy prices are linked to the shift. Textile and garment producers in Bangladesh, Cambodia and India are among those benefiting from rising prices in China.

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