China’s rising cost of labor has driven the country to start producing and exporting high end goods. China is evolving as a country and by doing such, their high-growth export industries are changing. The year-to-year growth rate of labor-intensive goods hovers at or just below 0%. On the other hand, high-value goods such as electrical machinery, cars and optical, photographic equipment has a growth rate of roughly 11%. A lot of the industry in the US deals with services and intellectual goods so will we see a shift to outsource these to China as well? It could very well be that the demand for higher-end goods has increased or maybe China has such a large global market share for labor-intensive goods that there isn’t room for growth. Regardless, it will definitely be interesting to see if this is sustainable growth or if it is merely a blip on the radar.