Rising China labor costs could lead to 3m new jobs in US, report says

BEIJING - Fast-rising labor costs in China's competitive manufacturing regions are expected to keep more US investment at home and create up to 3.2 million new jobs there by 2020, according to a report from the Boston Consulting Group.

However, foreign direct investment from the US might not shrink in the coming years, said a partner of the consulting company on Sunday.

"US manufacturers are expected to continually inject as much money as in previous years into China's manufacturing sector. Their investments might shift to supply products for Chinese domestic consumption instead of exports," David Lee, a partner in Shanghai, said.