Why China’s wage rises are welcome

News that 13 Chinese provinces and cities are to raise the minimum wage, coming after the announcement of a “flexible” currency policy 10 days ago, is promoting speculation that the mainland economy is on a downward slope as it is forced to abandon its competitive advantages in labour costs and the undervalued yuan. This is wrong.

The wage increases are caused primarily by a significant geographical shift in manufacturing. As new jobs are created in central and western China,...

Why China’s wage rises are welcome

Why China’s wage rises are welcome

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