As labor costs rise, China's manufacturers are facing unprecedented challenges. Some are being forced to move to less expensive regions in the nation's interior, others are shifting production to Southeast Asia, and some are shutting down.

Manufacturers may have been especially spooked by a report released May 5 by the U.S.-based Boston Consulting Group, which predicted a narrowing wage gap between the United States and China over the next five years. The report said the change will increase the number of Made in USA products appearing on U.S. store shelves at the expense of Made in China products.