According to the Chinese National Bureau of Statistics, the Chinese wages in the urban areas increased to €3.639 in 2012. This is a 17.1 per cent increase in 2012, for private sector employees working in urban areas. However, the increase was smaller than a year before. In 2011, the wages were up by 18.3 per cent. In addition, according to the CIA World Factbook, inflation in China during 2012, stood at 2.6 per cent while in 2011 was at 5.4 per cent.
Overall, the GDP per capita for the biggest country by population in the world (1,349,585,838 people), was estimated at $9,100 in 2012, being at the 122th position in comparison with the rest of the countries.
Still, Chinese private sector average urban wage growth has been rising steadily in line with the Chinese GDP. According to AFP, the pace of the specific Chinese wage is increasing more than doubling from 2009-2010.
Because of the rising Chinese wages and burdensome regulations, foreign companies are considering expanding their investments in other countries on the region. On 8 April, the New York Times said that Japanese, US and EU companies have started to invest in Cambodia, because they want to limit their overwhelming reliance on factories in China.
However, it is considered that due to China’s fast growing domestic market and the expected increase in demand many more companies are building new factories in Southeast Asia to supplement operations in the communist country. Moreover, productivity in China is rising almost as fast as Chinese wages in many industries.
According to a separate commentary on the NBS website, public sector urban wages increased 9 per cent, adjusted for inflation, to €5,922 in 2012 from the year before.