Bo Zhuang

Chief Economist and Director, China Research
+86 10 5960 3315

Jonathan Fenby

Chairman, China team and Managing Director, European Political Research
+44 20 7246 7880

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China’s labour market is leading the rebalancing

Overview

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...

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