According to CNBC, China remains the world's largest exporter of low-end goods, but has recently started to lose share in key markets such as textiles due to its rising labor cost. Meanwhile, although many countries can now compete with China on labor costs, it is countries elsewhere in Asia, able to take advantage of strong infrastructure and existing supply chain networks that will be the main beneficiaries of China's move out of low-end manufacturing. 

Because China is IKEA's number one supplying country, it will cost IKEA more to manufacture the same products. The consequence is either decreasing company's profit or rising products' cost. However, this can be solved quite easily. According to the same article, many countries have benefited substantially from China rising cost, especially South East Asia countries where labor cost are currently half those of China's. By offshoring production to these countries, IKEA can reduce cost, remain products quality while get rid of the "made-in-China" tag. 


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