China's American Chamber of Commerce released its annual White Paper on Monday, saying that more than 2/3 of US businesses in China believe that the rise in labor and other costs is hurting China's attraction to foreign investment.

The report points out that rising labor costs are one of the most worrying business risks of the members of the US Chamber of Commerce in the next few years, next only to the threat of China's economic slowdown.

J.Norwell Coquillard, chairman of the American Chamber of Commerce in Shanghai, said that although the US business is still optimistic about China, the cost problem has shifted some enterprises to positions and some enterprises have moved to other countries.

"Although China's continuous high growth has attracted foreign investors to invest and expand business in a large extent, it is undeniable that the rapid development of China's economy has made business competition more intense and has greatly increased operating costs."

Coquillard told the media.

He also pointed out that the rise in labor costs is also accompanied by the increase in raw materials, sales, taxes and real estate costs, which have contributed to the "pformation of minds" of foreign enterprises, especially those of low-end manufacturers, who used to view China as a low-cost production base.

"We thought the inexhaustible cheap and simple labor force is now near the limit."

Coquillard said, but he also stressed that even so, most enterprises still have no intention of leaving China.