Helping hand for manufacturers

In a recent interview with the media, Cao Dewang, chairman of Fuyao Group, the largest automotive glass supplier in China, said he is setting up a factory in the United States with a total investment of $1 billion, citing concerns over high taxes and rising costs back in China.

Cao's plan has caused heated debate over whether China still enjoys manufacturing cost advantages over the US.

A 2015 report published by the Boston Consulting Group comparing manufacturing costs between China and the US found that China's advantage over the US declined from 14 percent in 2004 to 4 percent in 2014. It also cited increased salaries, the yuan's upward exchange rate against the US dollar and rising energy prices as three major factors putting increasing cost pressures on China's manufacturing sector.