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To: skinowski who wrote (108858)	6/24/2010 12:12:30 AM
From: clochard	Respond to of 110194

Wages in China will rise because we will pay a little more for their products. All they have to do is demand a pay rise. They just have to remain the cheapest and we will pay up.

To: skinowski who wrote (108858)	6/26/2010 12:22:15 AM
From: Lee	Read Replies (1) \| Respond to of 110194

In China it depends on what skill set your looking for and where you are sourcing it. There are big differences between Beijing, Shanghai and Inland/Western. There are big difference between skilled resources and unskilled labor. China is super competitive in manufacturing for a reason. China has a deliberate long-term model to develop their country. The focus is moving from East to West. Its not a direct compare but the difference between areas of recent focus in the East to Inland/West you might think Western Germany to Eastern Germany 20 years ago. China has a long road and will remain low cost (super competitive) for companies that follow inland. China also needs areas that have developed be a source of demand so there is consideration to develop consumers. The real estate market in the East does have issues. On the one hand China forces 20% down payments for first time buyers and 30% to 50% deposits for additional properties, and Chinese and less likely to walk away. But real estate is considered a store of wealth so people will buy multiple properties and leave them empty (not even rent). If people loose faith in the "store of wealth" concept watch out. But this won’t be the end of China; it will just shift more of the focus at that time to exports.

To: skinowski who wrote (108858)	6/27/2010 11:50:23 PM
From: GST	Read Replies (1) \| Respond to of 110194

As Lee pointed out in his insightful reply to your post, China is not simply a place where you can generalize. Much of the development over the years required moving millions of people around -- mass migrations -- and the Chinese know full well that this cannot go on for a number of reasons. So now you see the big push up the delta and west. As the 'cheap' part of their labor force is found further inland, the coastal cities are marching up the ladder of value added and income. This is where you wil see wage gains -- indeed, coastal cities are already well up the income scale.