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A Productivity Boost for China
Aggregated Source: China Challenges
YONG SIEW WAH writes in the WSJ:

There is now wide agreement that Chinese manufacturers need to move up the value chain, and quickly, to keep pace with rising wages. Yet there is much less understanding of how this will be accomplished. Conventional wisdom tends to focus on the need for more capital investment in better equipment to produce higher-end products with more reliable quality. That's not the whole story, however. Much more attention must be paid to the soft skills required for this transformation, and especially the new management techniques China will need.

The need to boost manufacturing productivity is urgent. From 2008 to 2012, minimum wage levels across the country registered an average 12.6% annual growth rate. In the Chinese coastal province of Guangdong where many factories are located, the monthly minimum wage is 1,300 yuan ($212). While wages are still much lower than in the developed West, China is no longer the world's lowest-cost manufacturing hub, with Vietnam's and Bangladesh's monthly minimum wages at $113 and $23 respectively.

Read more: http://online.wsj.com/article/SB10001424127887323419604578570490509956824.html

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