China's Labor Costs to Rise Nearly 9% in 2016, Think Tank Says

Labor costs in China are expected to rise by nearly 9% this year, a research report showed, in a development expected to pressure authorities to reduce corporate social insurance contributions and ease other burdens on companies to help them ride out the growth slowdown.

Increasing labor and land costs in China have been forcing foreign investors to move their manufacturing out of the country to cheaper locations in Southeast Asia, while putting the squeeze on local companies already struggling with weakening expansion.