Rising Wages, Strikes Hurting Business

Rising costs, manpower shortages and worker strikes are hurting China's competitiveness, says the South China Morning Post.

 

The ongoing labour unrest at Honda and the pay increases at Foxconn are negative signs for thousands of businesses who are "watching their low-cost advantage diminish," says the Post, quoting factory owners and economists.

 

Citing a Hong Kong Trade Development Council survey, the Post says 70% of respondents reveal their labour costs increased by an average 17% in the past six months, resulting in higher production costs.
 

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