From Bloomberg News via the International Herald Tribune:
Rising production costs in China might soon turn the smiley faced Wal-Mart logo on that rack of $7 cardigan sweaters into a frown.
Increasing wages and new environmental regulations, along with higher prices for raw materials, are pushing up the cost of manufacturing in China.
That would lead to higher prices for the clothing, toys, electronics and other products that the nation exports, said economists, manufacturers and others involved in the China trade.[Full Text]
See also “Factory prices up on oil and material costs” From Shanghai Daily.