SPIRE SIGN IN Register

Spirethoughts

Spire's six most recent Spirethoughts.

Will cost-effective compost rejuvenate African agriculture
Will compost turn out to be the magic mineral for African agriculture?
Will emerging countries dominate the pool of global megacities in futu...
Thumbnail_Will the tech sector create new employment opportunities for persons with disabilities
Will the tech sector create new employment opportunities for persons w...
Thumbnail_Spirethoughts_Can permanent research bases for human beings be built on the moon
Will 3D printing enable the construction of permanent facilities on th...
Will Africa become the latest global aviation hot-spot
Will Africa become the latest global aviation hot-spot?
Will air taxis become the latest urban transport innovation_
Will air taxis become the latest urban transport innovation?

China’s rising labor cost woes

China’s position as the world’s biggest producer of low-cost goods is at stake. Its surging wages (and other costs), as well as rapidly aging population are showing signs of undermining the competitiveness of the nation’s economy and threatening its growth potential. Investors are seeking to relocate to countries that have cheaper labor or are closer to big markets in the U.S. and Europe, such as Vietnam and Mexico.

Unless compensated by an increase in labor productivity, high wages could impede the economy’s growth potential and competitiveness. China must ensure that minimum wage growth do not outpace productivity growth. Incentives should also be provided for companies to facilitate on-the-job training and invest in new technologies.

Which companies have left China due to increasing labor cost?

Back to Top

Back to Home
BTBTBTBTBTBT