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Mainland China's low-cost advantage is nearing history as Hong Kong factories operating in the Pearl River Delta have increased wages and improved working conditions to pre-empt any labour unrest, says the South China Morning Post.

Citing the Ministry of Commerce spokesman Yao Jian, the Post says improved labour welfare and better rule of law on the mainland would eventually overtake low wages as the primary attractions for foreign investors.

There are no official figures on the average wages offered by factories operating in the mainland, but the Post says Taiwanese factories "largely offered lower monthly salaries and encouraged workers to work more and earn more through extra shifts."
 

Nelson Siu Nai-sun, president of the Hong Kong Professionals and Senior Executives Association, told the Post that most Hong Kong factories offered better pay than those run by Taiwanese investors.

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