Wage Growth in China? Or Just at Foxconn?
Business Insider reports on wage increases at Foxconn:
WSJ reports that according to a company announcement, minimum wage workers may see a more than doubling of wages, while others will see at least a 30% hike — previously the company had indicated a 20% wage hike to deal with the problem, so this is already an expansion.I’m curious if this is going to stick at Foxconn, and if it will affect wages in China generally. If so, I think it is generally a good thing for China, for the potential growth of the middle class there, etc. It may raise prices modestly here, but counter-balancing that it may also moderate downward wage pressures here as well. Or, perhaps it will create pressure to put manufacturing in other locations around the world. Time will tell.