Rising costs in China put pressure on businesses around the globeChina's economy has been the envy - and object of attention - by policymakers and analysts throughout the globe over the past three decades. With a torrid pace of growth, it has long been assumed that China will surpass the U.S. as the biggest global economy within the next 20 years. However, surging business costs and persistent inflation are leading some to wonder whether the Asian giant's new signs of weakness will hurt growth domestically - and abroad.

The New York Times reports that wages are rising quickly this year in the world's most populous country, which is benefiting workers who often face harsh working conditions and minimal to no benefits. This, however, is putting pressure on companies to achieve procurement cost reductions, among other areas.

What's more, manufacturing costs are soaring in the country as energy costs skyrocket. Many businesses that have shifted a majority of their manufacturing to the country are feverishly working to make manufacturing cost reductions, but little hope is in sight.

Companies are now scrambling to find procurement consultants and other strategic sourcing experts to find alternative suppliers in the wake of the price hikes.
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