Wage inflation in China has raised questions over the country’s future as the preferred outsourcing destination for multinationals in search of cheap labour.
Reliable numbers are hard to get. But a US Bureau of Labor Statistics report published on Friday shows that between 2002 and 2008, real hourly wages in China’s manufacturing sector doubled, while they rose by barely 20 per cent in the US. Nevertheless, despite the increase, wages in Chinese manufacturing in 2008 were still only about 4 per cent of those in the U.S.
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