Signs of Rising Costs of Business in China

I've posted some earlier articles saying that business costs are going up in China. Here is more evidence of this trend.

Shanghai's economy growth may slow down a little this year due to shortages of power and raw materials, government officials said Thursday. "Shortages of energy and raw materials may restrain industrial output this year," said Xu Jianguo, director of the Shanghai Economic Commission. "Export growth is likely to slow down. That will also influence local manufacturers' sales this year," he added.

The Shanghai Economic Commission is worried that increased business costs will hold back the city's development. In my assessment, these costs can ONLY go up. The important question for the Chinese is how rapidly their business costs rise compared to competing locations.

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