Shaun Rein is the founder and managing director of the China Market Research Group, a strategic market intelligence firm.

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"It is an absolute nightmare, " said Shaun Rein, whose consulting firm, China Market Research Group, employs about 20 analysts in the country.

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Shaun Rein is the founder and managing director of the China Market Research Group, a strategic market intelligence firm focused on China.

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"The biggest risk in the world is China's middle class not being happy, " said Shaun Rein, the managing director of China Market Research, a consulting firm.

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This article is by Shaun Rein, whose book The End of Cheap China: Economic and Cultural Trends That Will Disrupt the World will be published in the spring.

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"The average migrant worker's wages increased 15% this year, and inflation is only 1.9%, so that means lower-wage workers can spend, " said Shaun Rein, managing director of China Market Research Group in Shanghai.

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For more from Shaun Rein, click here.

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Stanford professor Michael Spence, Nobel laureate in economics, and Shaun Rein, founder and managing director of China Market Research Group (CMR), both told me that China might very well exceed Japan to become the second-largest consumer market in the world.

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According to China observer Shaun Rein, the country is already in a labor shortage, which began during the Great Recession, as many American and European companies stepped up investment in China to offset a sales slow-down in their home markets.

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