Rising wages viewed as result of slower growth in the labour force.
The phenomenon of rising wages now seen in China is often viewed simply as a result of the slower growth of the labour force and pressure for pay hikes from workers in coastal regions. We believe investors should instead view the changing labour scene as part of the leadership’s larger effort to rebalance China’s growth drivers in the coming years. This is why we expect the central authorities to continue to support rising wages to boost labour incomes after three decades of tilting the distribution of national income in favour of capital. (China 21 September 2010)
China's average yearly wage nearly doubles by 2016 risiing at an average of 13% per year.