China’s Wage Inflation, and the Consumption Wave

Some data points from a recent FT piece on China wages really stuck in my head:

• Wages were up 2-5% a year most of last decade, but last year jumped 16%
• Wages are up around 20 per cent in most eastern China factories this year
• China wages are still around around a third of Mexican salaries and one-quarter of Brazilian, but the ratio is now narrowing quickly.

More here, but the upshot is that China consumption may surprise people, even if the transition from being export-led is rocky in the short term.

Related posts:

1. Which is More Worrisome: Inflation or Deflation?
2. The China Consumption Gap
3. China Codgers, and the Next Wave (Sic.) of U.S. Dominance
4. Readings: China, Jobs, Credit, etc.
5. Outlier ETech-er and Keyboard Caloric Consumption