… American toy makers, who rely heavily on Chinese
factories, expect prices to increase 5 to 10 percent for the 2008
holiday season, largely because of rising manufacturing costs.
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.
Let me reiterate: this is not the end of Chinese manufacturing, or Chinese exports to the U.S. But the low-hanging fruit has been picked. The middle-hanging fruit will be a little more expensive to harvest.