China's increased costs and inflation.
http://blogs.forbes.com/investor/2010/12/20/chinas-coming-inflation-nightmare/
Their inflation rate highest level in over two years, food is up 10% year over year.
Interesting that the cost of food accounts for 33% of their CPI. In the US Food and beverage account for around 15%.
Takeaway for me is costs to manufacture will continue to inflate and their currency will appreciate against the dollar. If you purchase from China suppliers try to buy in USD and you can gain.
