Guangdong, China's biggest export centre, announced yesterday it would raise the provincial minimum wage by an average of more than 20 per cent.
The move comes amid worries about inflation in China and complaints from factories in Guangdong and elsewhere about unfilled jobs as they rush to complete a surge in orders since February.
“A lot of our workforce traditionally come from the poorer regions in western China, but factories are moving out there to take advantage of cheaper wages and lower taxes,” said Au Yiu-chee of Hong Kong, who owns a textile factory in Dongguan, a manufacturing centre.
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