Rising Factory Costs Erode China's Edge

China: It was inevitible as China develops and standards are elevate enough inclusing wages to make their edge dull.

"....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. To adapt, many multinational manufacturers—including Intel Corp., iPod-maker Hon Hai Technology Group and Japanese companies like Canon Inc. and Sony Corp. are expanding operations in Vietnam. Auto parts makers are decamping for the Middle East and Eastern Europe, textile-makers to Bangladesh and India. Thousands of smaller Hong Kong, Taiwan or Chinese-run factories in south China's traditional export hub of Guangdong are closing or moving out. Meanwhile, Chinese inflation has risen to its highest point in more than 11 years, jumping 7.1 percent in January, as snowstorms worsened food shortages. The biggest price hikes have been for food, but analysts say longer-term pressures on prices for manufactured goods will persist.