Chinese Communism at the Crossroads

Henry C.K. Liu hliu at
Sun Nov 3 23:17:18 MST 2002

Jurriaan Bendien wrote:

> This perspective assumes among other things that Chinese workers are able to
> raise their wages, but what are the real possibilities for this ? Are
> Chinese wages increasing significantly ? What is the real trend ?

There are forces at work that are beginning to understand that  the only way to
stop global deflation is to push Chinese manufacturing wages higher.  There is
much room for this to happen because current wage is so low.  The Chinese
government has insituted an income policy for government workers of 30% rise a
year for the past three years. This has slow deflation in China.  All of the
world's auto companies are rushing to joint venture with Chinese partner to
produce for both the domestic and export market.  Brazil is joint venturing with
China to produce civilian commercial jets for the Chinese momestic and regional
market. This will raise Chinese wages, but will takes jobs and market share from
Korea, Japan, Brazil and the US.  It already happened in many  consumer goods
sectors.  Seen a Hiaer refigerator lately in your shopping mall?

Henry C.K. Liu

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