The End of Cheap China Goods?

I just saw an interesting AP article on rising manufacturing costs in China.  Labor costs have been on the rise in China for years, as has the value of the Yuan.  Certainly, prices are still lower in the Chinese interior, as compared to the seaboard, where most of the development has taken place.  Still, this trend will continue.  In the current economic climate, manufacturing costs in the US are becoming more competitive.  It seems to me that a little balance is not a bad thing; that the current economic situation is forcing us to consume less and maybe save more.  What do you think?