Video Playback: Is China Losing Its Status as "World's Factory"?

Is China losing its status as the "world's factory?" For the first time in years, we're seeing a decline in foreign direct investment into China. With rising wages in China—and better opportunities in places like Thailand and Indonesia for low-tech manufacturing—many Western companies are starting to re-think the China model. China hopes to counter the shift by switching to more high-tech manufacturing, and becoming a product innovator, not just a product finisher. But new technology is now making it possible for companies to bring these high-tech jobs back to the US. So can China keep its manufacturing advantage as its being squeezed from both sides? And what does this mean for China and for the US?

 

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