What does Dani Rodrik think of this?

China will curb exports of cheap labor-intensive products to force manufacturers into making higher-quality goods… The Ministry of Commerce will expand its catalogue of processed goods subject to export limits in the second half of 2007… Manufacturers can be exempted from the exports limit if they shift their production to inland provinces including Shaanxi, Xinjiang and Gansu further away from the Chinese coast, part of a plan by the government to close the income gap between the wealthy coastal cities and the interior.

[HT: Setser]