Eastern Jiangsu province, which exports more than Brazil and South Africa combined, raised its monthly minimum wage rate 13% to $140 last week. It was the first time the rate had been adjusted in two years.
The potential round of minimum wage increases comes amid signs that inflationary pressures are picking up in the Chinese economy after a rapid recovery in the second half of 2009, fuelled by a huge government stimulus program.
Financial Times reported that in the immediate aftermath of the global financial crisis last year, local governments were reluctant to raise wage rates and put extra strain on already struggling factories. But now that officials are confident the worst is over for China’s export sector, they are more willing to address workers’ concerns.