Determined by the legal minimum amount stipulated in 15 different countries and added together with the mandatory welfare payments, China's workers are now amongst some of the best paid in Asia. China now is the third highest labor costs country in emerging Asia after Malaysia and Thailand.
However, it is expected that China's next five year plan will see mechanisms put in place to double the country's minimum wage by 2015. That will raise the Chinese figure to $3,000 plus welfare of 50 percent, assuming the latter payments remain the same. This provides a total minimum salary overhead of $4,500. In reality, most salaries will be far higher, and significantly more expensive than any other Asian country.
I hope such salary increases should manifest themselves into a massive rise in Chinese consumerism as significant wealth and disposable income is created. This follows on from plans revealed last year by several large scale manufacturers such as Buyer and Adidas, both of whom signaled their intentions to increase sales in China's domestic market by establishing additional manufacturing units in several inland cities. Growth for them, it appears, would be coming from new wealth being created inland and elsewhere within China's own emerging markets.
Businesses involved in China must now start to take these figures into consideration for their businesses, or face either losing a burgeoning domestic market, or failing to adapt to lower pricing from competitors who have relocated elsewhere in Asia. Low prices for cheap commodities such as computers, toys, and other mass produced items will remain the driver for markets in the United States and European Union, meaning export driven manufacturers must begin to look at emerging Asia to ascertain which country is suitable for housing facilities for such demand.
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