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China's labour cost woes

  • Published 29 Jul 2010

Will rising wage costs signal an end to China's manufacturing prowess?

Strikes and suicides across a number of manufacturing plants have forced manufacturers to raise workers' salaries. Taiwanese IT giant Foxconn has raised wages at its China plant by as much as 66%, and Honda and KFC have been following suit. Meanwhile, local governments have been enforcing standards on minimum wages. Will China lose its low-cost labour edge?

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