Global Economy

[Guest]

[url="http://finance.yahoo.com/news/Changes-in-China-Could-Raise-nytimes-1946081566.html;_ylt=AjTRpKOgT2F6xhl7xtgfJIK7YWsA;_ylu=X3oDMTE1NzV1bzk3BHBvcwM5BHNlYwN0b3BTdG9yaWVzBHNsawNjaGFuZ2VzaW5jaGk-?x=0&sec=topStories&pos=7&asset=&ccode="]Changes in China Could Raise Prices Worldwide[/url]

United States and European Union officials have been pressing China to help improve the health of the global economy by consuming more and reducing the country’s massive trade surpluses.



Rising labor costs here aren’t the end of cheap production in China, analysts say, but they are likely to help change the country’s manufacturing mix.



“China isn’t going to lose its manufacturing base because it’s got a huge domestic market,” said Mary Gallagher, director of the Center for Chinese Studies at the University of Michigan. “But it will move them toward higher-end goods. And that matches the Chinese government’s ambition. They don’t just want to be the workshop of the world. They want to produce high-tech goods.”