Rising salaries outpace inflation. Yet the cost of living continues to be as great a concern for consumers as the cost of employment for businesses. Buyers lament regular increases in the pricing of fuel, household goods, and the autos and homes for which they’re purchased. Meanwhile, Tianjin’s minimum wage − set to increase by 16% this year − is just one of many causes for investors and manufacturers to consider establishing themselves outside the Great Wall.
While western trade partners proclaim that alleviating both currency suppression and trade protections will strengthen China’s global foothold – increasing the value of its currency and allowing tougher market competition – doing so may adversely affect both inflation and business expenses at home.
This month’s Economy and dual Feature Stories discuss recent developments in these areas, as well as their potential outcomes.
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