What is China's competitive advantage?

China's major competitive advantage in recent years has
been the fact that it has a very low-cost labor force that is relatively well-educated. 
China has also had a relatively good infrastructure when compared to other low-wage
countries.  Because China has had a fairly good business environment (good
infrastructure, stable government) and low wages, it has had an advantage over other
countries in manufacturing jobs.

Lately, this advantage has
been disappearing.  China's future advantage may well be the size of its middle class. 
China has a huge domestic market and laws that make it much easier for local firms to
succeed than for foreign firms to succeed.  This may well be China's greatest growing
advantage as its workers push for higher wages and its old advantage
disappears.