If you remember back in the 80's the story was how the rise of Japan would mean the demise of the US as a world economic power. Then they had a real estate crash, a stock market crash, a banking crisis, and a decade long recession. Now supposedly China plays the role of the great foreign threat. From that weird pink newspaper, the Financial Times:
The competitiveness of China’s manufacturing industries has suffered serious erosion over the past year, according to one of the world’s largest trade sourcing companies.
Hong Kong-based Li & Fung group, which manages a $7.1bn a year trading business, said price rises crept back into the Sino-US and EU supply chains last year, after at least six years of often “severe deflation”.
William Fung, Li & Fung managing director, reported an average 2-3 per cent increase in the once unbeatable China price its US and European clients were willing to pay. He pointed to a “double-digit” rise in Chinese labour costs, the revaluation of the renminbi and higher oil and energy costs for the shift.