The potential for labor cost arbitrage is disappearing as China scales the value chain, its nominal wages increase, the yuan appreciates and purchasing power in

The potential for labor cost arbitrage is disappearing as China scales the value chain, its nominal wages increase, the yuan appreciates and purchasing power increases, all the while the US and EU see decreased real wages. A moderate increase in manufacturing technology turns employees into controllers rather than workers, increase's productivity and so makes manufacturing feasible in the EU and US.