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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…

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