The Return of Manufacturing to the US -- Has China Had It?

Small companies, generally speaking, should not source product in China. Aside from logistical difficulties, they don't have the volume orders to command signficantly low price points nor even the quality control larger buyers can insist upon (and must fight to ensure is implemented). This Wired article on the subject is worth reading.

Rising labor costs do not present a major problem to manufacturers in China, even as they have risen over the past decade, because they comprise a minor percentage of product cost. The government-led tax incentives are the major drivers -- and the drooling (over an undersupplied consumer market not even nearly the size of the EU, but with the dreamlike possibility of "limitless growth "). Manufacturers may complain all they like, but quality concerns... [via Asiabizblog]