China should slow wage growth to stay competitive, says human resources minister

BEIJING (REUTERS) - China should slow down the pace of wage increases in order to maintain competitiveness, human resources vice minister Xin Changxing said on Friday (July 8).

Several Chinese provinces have slowed or halted rises to the minimum wage, as Chinese companies face pressure from rising expenses and weakening demand.

The government is also looking to lower the social benefit cost burden on companies.

Lower wage growth could also help Chinese companies better compete with overseas low-cost centers for export orders.

Despite rising labor costs, China continued to gain global export market share last year.