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As manufacturing goes inland, watch the waterways

Overview

Cheap manufacturing, the cog of China's double-digit growth, is moving away from its heartlands in Guangdong due to rising labour and land costs, and the development there of plants higher up the value-added scale. Combined with the government's focus on national harmonious development, this is good news for the Yangzi Basin, with its vast reserves of cheap labour and land.

Economics will probably drive manufacturing into the region anyway, but the logistical value of China's...

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