Manufacturers consider moving to places with lower costs like India
Analyst Bruce Tsao from Capital Securities in Taipei said dramatic wage hikes in the mainland are 'adding more woe to labour-intensive industries in China already troubled by low profit margins'.
China is not only facing the challenges of higher wages, but also that of growing labour unrest.
Production at a Japanese-owned electronics factory in northern China was suspended from Tuesday to Saturday as 3,000 workers went on strike over pay and benefits. It marked the latest in a spate of labour unrest to hit foreign-run firms in China, highlighting growing discontent among millions of workers over low salaries and poor conditions.
The wage supplement that the govt gives to the low wage worker has been called a subsidy to the employers. In a sense it is welfare - except we get commercial operators to hire Singaporeans cheap, then we top up the wages. It is not much different than paying employers to employ workers.]