china now exporting inflation, page-4

this is another news item that i read earlier in the week that i thought was interesting:

For foreign investors, China is yesterday's hero

MULTINATIONAL corporations are diversifying their new investments away from "the world's factory", China, in response to rapidly rising labour costs, shaky legal protections and fear of anti-Japanese sentiment.

While China remains by far the favourite direct investment destination, India, Vietnam and other South-East Asian countries are gaining ground.

Foreign direct investment from the European Union into China fell 29.4 per cent last year, Japanese investment fell 24.6 per cent and US investment fell 12.8 per cent, says the website of the Department for Foreign Investment Administration, part of China's Ministry of Commerce.

check out link for rest of article.

http://business.smh.com.au/for-foreign-investors-china-is-yesterdays-hero/20080129-1ovq.html