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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (64839)	3/27/2007 2:43:54 PM
From: ajtj99	Read Replies (1) \| Respond to of 116555

Wages are increasing in many areas of China, but some makers are moving production inland to lower wage areas if their labor is a high percentage of their finished costs. With the huge unused capacity in China in spite of increasing demand, I doubt inflation is going to be an issue, especially with lower commodities prices in 2008 and a recession in the USA. Debt service will be more of a focus than profits for these firms who expanded aggessively and are pinched.