China, with 1.3 billion people, once seemed to have an unending supply of low-wage workers. Not anymore. With farms more profitable, there is a labor shortage of 2 million in the industrial region bordering Hong Kong, where companies manufacture products for Adidas, Mattel and others. A survey by the U.S. Chamber of Commerce in Shanghai found that about 20% of companies are considering moving factories to poorer countries like Vietnam, Bangladesh and India.

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