China unlikely to lose manufacturing advantage

02/27/2013 | Strategy+Business online (free registration)

Manufacturing in China is certainly going through a transition, but most likely not the kind of crisis many experts describe, writes John Jullens, a Shanghai-based partner at Booz & Company. He outlines several factors that could cancel out China's loss of its labor-cost advantage, including domestic demand driven by economic development, its continuing urban-rural divide, the potential for Chinese factories to optimize operations and innovation in cutting manufacturing costs.

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