Powerhouse China entering new phase - JPM

Pinakin Patel, chief portfolio manager of JPMorgan's Far East Equity desk, says there is a "general misconception" that other nations have moved up on the value chain, responding to demand for higher quality goods, while China has remained as a "workshop". Patel says China, on the contrary, is in a transition phase from low end to high end manufacturing. He says with margins affected by high operating costs, increasing wages and more regulatory requirements, as well as export tax rebate changes, low-end companies must either move their manufacturing bases to a cheaper area - like Vietnam...