The Study of Business and Globalisation@Limkokwing

December 24, 2011

Filed under: Uncategorized — Dr. Derek W. Nicoll Ph.D. @ 8:57 am

China is raising the minimum wage. any of the costal boom cities are failing to attract migrant workers from the country side. Most are now staying put or returning to their rural homes because of rising living costs and impoverished living standards. From Jan 1 in the western province of Sichuan the minimum salary will rise by 23.4 per cent. Most other provinces are to follow the government-advised rise of 13 per cent. This is considerable and signifricant – developing countries prepare yourseleves, expect more Chnese knocking on the door, looking for your peasants nad unemployed. China itself is losing its edge as a low cost manufacturing country, however it still has quotas and customers to fulfill. As orders dry up from the US and Europe, this wage rise is also an attempt by the Chinese authorities to boost domestic consumption by encouraging spending among a nation hwere people tradionally save. As the expectations of the once cheap Chinese workers grow, global manufacturers are starting to seek cheaper labour in low cost countries such Africa, Bangladesh, Vietnam and Cambodia.

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