Caixin
Apr 26, 2011 10:44 AM

In China, Fear Not Wage Inflation's Impact

Demands for higher wages have attracted a lot of attention from investors closely watching China's inflation rate. China will soon enter a period of wage inflation, but wage increases will come too quickly.

Experiences in Taiwan and South Korea in the mid-1980s shows that if per capita GDP exceeds US$ 3,000, wages will significantly increase. In 2008, China's per capita GDP rose just over US$ 3,000. However, China is largely an agricultural country, and pay raises and their consequences will not be as serious here as they were in Taiwan and South Korea.

You've accessed an article available only to subscribers
VIEW OPTIONS
Share this article
Open WeChat and scan the QR code