From the Readers

Wage increase reflects govt goal

(China Daily)
Updated: 2010-06-24 07:39

Comment on "Pay hikes good for 'long term' " (China Daily, June 17)

China Daily has quoted a senior Ministry of Human Resources and Social Security official as saying that the increase in wages in some labor-intensive industries was good for employment in the long term.

This assertion gains added importance because many countries are still reeling under the impact of the global economic crisis.

Over the past few years, China has accorded high priority to GDP growth.

Other factors, from economic structure to the environment, took a back seat. And that is precisely why China is facing so many chronic problems today.

The low pay that migrant workers get has been a serious problem for years. The wages they get is hardly enough for them to make ends meet, let alone turn them into what in market terms are consumers.

The percentage of investments in infrastructure construction and exports are unreasonably high, while consumption plays a less important role in bolstering the economy.

Hence, the government's support for higher wages is of great importance.

First, the government wants to narrow the gap between the rich and the poor, and is trying to ensure that everyone benefits from the reform and opening up in order to facilitate the building of a harmonious society.

Second, the government is determined to adjust its economic development model. By increasing wages, it can boost workers' purchasing power, which is a significant measure to increase domestic demand.

Moreover, the authorities want to do away with the image of China as "world factory" and producer of low-end products. A new structural transformation to encourage innovation and move toward a technology-driven economy is what the government wants to pursue most.

Hulin, via e-mail

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(China Daily 06/24/2010 page9)