Is "cheap labor" winding down in China?

Bill Powell at Time Magazine has an interesting article about the era of "cheap labor" in China.  The article quotes Helen Qiao, chief economist for Goldman Sachs in Hong Kong, saying "real wages for manufacturing workers in China have grown nearly 12% per year."  However, the article states that the average manufacturing wage in China is still just $3.10 per hour (compared to about $22 in the U.S.).