U.S. companies in China are not cheap to find another way out.

Food, fuel and other rising raw material costs push up domestic prices, export prices rose so that it means that rely on China to reduce costs over the years a large number of U.S. corporate profit margins decline, and began to stimulate business worldwide looking for the next .low-cost regions. .<P> (Http://finance.) Is the current weak U.S. economic growth, property market, the third consecutive decline. .Feel even more strapped homeowners, which causes more difficult to deal with inflationary pressures through price increases. ."China has helped drive down (U.S.) inflation, I think this situation will end," Massachusetts Institute of Technology economics professor Housman said, "not only because China is exporting inflation, and China is the primary ... ... .the main reason for rising commodity prices. "Houseman has been studying the impact of Wal-Mart on inflation. .</ P> <P> With China's rapidly growing economy consumes more global resources, thus pushing up inflation, and its exports due to price increases began to be affected. .Rest of the world feel the inflationary pressures, especially the lack of food in poor countries. .</ P> <P> wages of Chinese workers is also growing rapidly. .According to Morgan Stanley research, about fifty countries the current level of inflation in the double-digit growth in the number of these countries account for 42% of the world's population. .This helps to explain why the United States the three months ended May import prices hit the biggest increase since 1990. .May the cost of imports from China rose 4.6% over the same period, to December 2003 for the first time since the publication of the data the maximum growth rate. .</ P> <P> end result is that a dollar can buy less of goods last year. .U.S. Labor Department data show that the purchasing power of $ 104.48 is now the equivalent of 100 dollars last year. .In 2006-2007, the purchasing power of the change rates are $ 2.85. .</ P> <P align=center> Wal-Mart Effect </ P> <P> contact the United States and China, large retail chains in the United States may be the most obvious. .Wal-Mart, Target and other large stores over the past decade a substantial increase in imports of Chinese goods, it is their price war in the most powerful weapons. .</ P> <P> Federal Reserve (Fed) Vice Chairman Donald Kohn said on Thursday that the United States currently imports about 18% of total demand, while in the late 1980s to 10%. .This is entirely due to prices. .According to research firm Sanford Bernstein of the U.S. Department of Commerce data analysis, in 1997 the need for retailers to pay per dozen men's shirts cost an average of $ 59.15, while 2007 was $ 42.14. .China has become a major exporter, is the main reason is the cost of U.S. retailers. .</ P> <P> but recent data show that in a long time inside the store advertised a low price, commodity prices have risen. .JP Morgan analysts such as Wal-Mart and Target stores for the monthly price survey. .The results show that in May 2007, Wal-Mart's 23 commodity prices to $ 106.92, the same basket of goods was $ 110.21 at Target; May 2008, the price of these goods is $ 108.79 at Wal-Mart, .to $ 111.93 at Target. .</ P> <P> Target spokesman said Lena Michaud, Target is expected for the second half of the purchase of clothing and household appliances will be price increases. ."In short, we will strive to maintain gross margins of affected commodities, and of course the final result depends on market reaction to rising costs." </ P> <P> research firm Sanford Bernstein, said retail analyst Uta Werner, retailers .are looking elsewhere to replace the Chinese, but their profit margins during this period may be a mild shock. .</ P> <P align=center> Vietnam Manufacturing </ P> <P> than India, no number of potential workers in a country close to China, but lack of infrastructure in India is difficult to quickly follow. .Nevertheless, there are signs that businesses are at least some manufacturing from China to other parts of Vietnam and Mexico are popular locations. .</ P> <P> Although the production to move close to their reduced transportation costs, which in oil prices at record highs is a key indicator of the occasion, but the company still can not leave China but fled because of inflation. .Mexico's central bank recently raised interest rates to curb inflation. .</ P> <P> "pressure on oil and food prices pushed up inflation is a global phenomenon that may affect the price of all items," a professor at the University of Missouri Columbia, said Emek Basker, "Most stores will have to raise prices .to counter rising costs. "Basker of the major retailers, including Wal-Mart, including the import mode. .</ P>.