Menu Close

The Effects of Chinese Wage Inflation on Consumers

I was in Hong Kong (just next to Shenzen) when this story broke last year and I remember thinking it was the start of a new dynamic in global inflation.

Just be long commodities!

A good read


A new era began in China last summer.

It all started at electronics manufacturer Foxconn’s Shenzhen plant, which supplies U.S. companies like Dell (Nasdaq: DELL) and Apple (Nasdaq: AAPL). Workers there began to protest wages and conditions, with some even committing suicide over the struggle.

In response, Foxconn raised wages by about 20 percent.

Wildcat strikes next hit Honda (NYSE: HMC) parts suppliers’ factories in the same province. And once again, workers eventually received a substantive pay raise.

But the strikes went much deeper than just those plants; they marked a turning point in Chinese labor…

Join the conversation and have a little fun at If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam filter.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Follow by Email