Experts predict drop in low-cost labor

China's abundant supply of low-cost labor, seen as the backbone of its remarkable economic expansion, could stop growing in a year or two. And it could start falling in 8 to 10 years. That was the prediction by a senior economic expert on Tuesday.

Cai Fang, the director of the Institute of Population and Labor Economics, said the transition to a balanced labor supply could also feature regional shortages. He said the fundamentals of a large labor force have changed, as indicated by the shortage of migrant workers.

As a result, rising labor costs will force overseas investors to forsake the country as the world's factory.