Why China can not avoid raising wages
The Chinese growth model, based on a docile workforce and cheap, is it threatened? The strike in Chinese factories of Honda and suicide clusters among the subcontractor Foxconn electronic, seem at least symbolic of a turn. These two events led to strong wage increases. And Beijing has validated this finding of a lack of remuneration in deciding dramatically Friday to raise the minimum wage by 20%. Twice that during the normal annual adjustment.
In a country accustomed to explosions of anger – with 127,000 protests in 2008 – and where information is locked, it is unclear whether they had the same impact in other times.
240 euros to live in Shenzhen
Until recently, indeed, the authority said that this kind of slippage occurs only in "capitalist" countries.But Premier Wen Jiabao has officially acknowledged the existence of a "certain level of social tension." It is also not a coincidence that the budget for public safety has increased significantly this year. But power is also well aware that the inequalities of wealth, rather than decreasing with the crisis has intensified further.