labor rate is too low given the non-existence of true labor unions. Not a good sign since it indicates pressure on the improvement of living standards and more polarization in wealth distribution.
Low labor cost in China is a two-sided sword. With such a low labor cost, where can you find a large middle-class to support certain industries? (please check recent posts of Blah Blah). With such a low labor cost, where is the economic incentive for high-tech industry and more R&D effort?
At the end of 19th century, US was also an exporter of low-cost manufacturered products. But US achieved that through better management and productivity improvement. That's not the case for China.
