— This is the script of CNBC's news report for China's CCTV on March 5, Thursday.
Welcome to CNBC Business Daily. China-a low-cost maker of goods-is falling behind in the global manufacturing race as rising wages and energy costs are putting pressure on the Asian country which has been synonymous with making super cheap stuff for U.S. companies.
TOUCH A (China)
choosing MADE IN CHINA
OR... MADE IN THE USA, is now a new question.
China is among several economies whose manufacturing price is a big advantage over the U.S..
According to data released by the The Boston Consulting Group.
Higher energy costs are dampening China's manufacturing prowess. The cost of industrial electricity rose by about 66 percent in China and 132 percent in Russia. The cost of natural gas soared by about 138 percent in China and 202 percent in Russia from 2004 to 2014.
On the flip side, moderate wage growth and lower energy prices are making the U.S. and Mexico more desirable manufacturing destinations.
The upshot? More U.S. businesses are likely to produce goods closer to home in the coming years.
Countries like Brazil, Russia, the Czech Republic and Poland are becoming less cost competitive.
In addition, burdened by late spring deliveries after nine months of tense negotiations at West Coast ports, retailers want to take things in their own hands.
According to a new study by consulting firm, the cost of manufacturing remains lower in overseas regions in Asia.
43 percent of retail chief financial officers said that North America provides the most attractive sourcing opportunities for 2015.
And in an ironic twist on offshored American jobs, some Chinese companies are pursuing "Made in USA" branding. "Foreign brands and quality control are increasingly important for China's affluent middle class," according to Rhodium's research.
Is the United States ready?
The survey shows that young people are less likely to spend more to buy U.S.-made products. Only 43 percent of American consumers ages 18-34 said they would spend more money to purchase domestically made goods, while 64 percent of those older than 65 said they would, according to a survey carried out for CNBC and Burson-Marsteller by market research firm Penn Schoen Berland.
Meanwhile, mismatch between incoming manufacturing jobs and demands from the unemployment side might be a challenge too, as more recent young graduates say they do not want to enter the manufacturing industry.
However, for China, when "low cost" is no longer its absotely advantage, it really needs to find another card to play the game.
CNBC's Qian Chen, reporting from Singapore.
Follow us on Twitter: