Could China's offshore cost advantage become a handicap?

I recently met a company that provides offshore IT services from China, known as Bleum. The company was clear to me that one of the big advantages of China is the fact that the wages are low.

But how long can this go on? Workers in Chinese factories have recently been striking over pay and the unrest caused has been beamed across the world.

So could workers soon be getting more money in China? Or will western comopanies be put off China after how the government clamps down on activities seen as a person’s democratic right in the UK?

Also see an article about working conditions in China, and this picture gallery depicting life in Chinese factories.

In 2008 IDC said offshoring to China will grow 23% every year until 2013 when it will be worth $6,8bn.