just the facts, page-35

Interesting comments from snowfree on rising wages in China.

"The average manufacturing worker's wage will at least double in 5 years. In another word, most of them will be able to afford Japanese products, and european products etc, we are talking about a market with 100s milions customers, for real this time. "

Experts agree that is already starting to occur now, never mind 5 years from now.

Couple articles on Business Spectator discuss the posibility of China reaching "Lewis Tiping Point".

Basicaly the economy reacheas a stage where the cheap labour dries out due to high number of factories competing for workers. It appears China has already reached this point, there is no more surlus of agricultural workers and so the factory owners have to pay higher wages. Recently the factory manafacturing Ipads was forced to rise wages first by 30% and and then by another 40%. Another company increased wages by 50 %. Workers are going on strike in several factories and are winning pay rises.

So the era of supercheap products from China may be over, but Chinese workers will have more money to spend at home.

I have seen a documentary about wealty Chinese shopers going for shoping trip to Japan, because the Japanese goods are perceived as high quality goods unlike the Chinese products.

So I think it is already starting to happen now.