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Monday, June 14, 2010

China's Wage Increases

Some good points brought up:

1. Will increases in China wages lead to higher inflation in China?

2. What will happen to the price of good from China?

3. Is the wage increases just making up for the wage freezes caused by the global recession of the last few years?

4. The Chinese government has the deal where they guarantee a booming economy and they get to stay in power.

What Do China’s Workers Want? - NY Times

What was missing :-)

1. Why is the Chinese government allowing this?
2. What are the politics behind this in the Chinese government?
3. What impact did the 48.5% increase in China's exports have on this?
4. What impact of the European crises?
5. Could a Gdansk ala China happen?

Another good article: Chinese Workers Challenge Beijing's Authority‎ - Wall Street Journal. This captures some of my thoughts.



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