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China minimum wages rise by 22% despite economic cooling
Published on: 2011-10-26
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Labour costs are rising in China, with official figures showing growth of more than a fifth in minimum wages.

That's despite a broader economic slowdown engineered by Beijing to bring down inflation.

The average minimum wage in most of the country rose by 21.7% in the first nine months of 2011.

The figures come from 21 out of 31 of China's provinces and regions, according to the Ministry of Human Resources and Social Security.

Rising costs may mean China will lose its edge as the world's cheapest manufacturing centre.

Indonesia and Bangladesh are benefiting most as rising costs in China force firms to switch production, according to a study by consultants KPMG.

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