One interesting current development being reported from China is workers in some plants striking for better wages and working conditions. As this trend continues, and I expect it will, companies will have to pay more and give better conditions and benefits. This will obviously increase production costs and raise prices.

Eventually, China's production costs will rise to equal those of the West and developed areas in Asia and the current glut of low price goods will be over. It happened to Japan decades ago and to Taiwan recently and China's turn will come.