Obviously the overwhelming decision is HF has some great stuff for great pricing, and I totally agree.
Planeman is dead-on. Having spent 16 months over there, I can attest that they are truly beginning to see the problems Japan saw when their wages started to level with the rest of the world. The major problem for China is their people's savings rate. It is 30-50%. Now most people would applaude savings, but 1/3rd to 1/2 of your income? It is an economic killer internally in China. If not for foreign investment, China would have about 300 million unemployed, and that is overall chaos and anarchy. They have already put out one stimulus this year to try and get people to buy - when I lived there, the government bought over 20,000 televisions, (made in China, obviously), and gave them to farmers who did not have TV. Just in the hope of them seeing more commercials, getting them to try and act like the rest of the world. And the twice yearly mandated raises in China is quickly catching up with them. Also, in keeping with socialistic system, they have a partial retirement system that kicks in at 55. Many Chinese people have taken advantage of that, and you just cannot keep doing that for people that live into their late 70's, as most Chinese do.
I think soon, maybe within 6-8 years, jobs will start leaving China like they did in Mexico. That will be a dicey time for the Asian Rim.
