As some local governments have raised the minimum wage
  • chitianshi520chitianshi520 January 9
    Rising labor costs Air
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     , changes in regulation pose

    A worker assembles a transmission at a plant for Germany-based Audi AG in
    North China's Tianjin on August 22. Audi opened the new plant to make
    trasmissions for its locally produced vehicles. Photo: CFP

    German companies in China viewed "2016 as one of the most economically
    difficult of recent years" due to rising labor costs and a shortage of talent,
    according to a survey released on Tuesday, which urges more liberalization in
    the market.

    Based on a survey conducted by the German Chamber of Commerce in China,
    German firms in the country evaluate their financial performances more
    cautiously than before. In addition, a third of the 426 respondents feel less
    welcome in China than before and their intentions to invest in new locations
    within the country have reached a three-year low.

    China's progress in opening up its market has been slowing down and an
    increasing number of German companies have been reporting difficulties in
    running businesses in the country Air VaporMax Moc
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     , German Ambassador to China Michael Clauss told a press
    briefing in Beijing on Tuesday.

    "High investment barriers remain for foreign companies," he said, noting that
    establishing joint ventures with Chinese partners is a must and that
    protectionism has been rising, like other places around the world.

    From January to September, Chinese companies' mergers and acquisitions
    (M&As) volume in the EU reached 11 billion euros Air
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     , but the EU's M&As in China only
    hit 500 million euros during the same period, Clauss noted. "There is certainly
    a gap," he said.

    However, 89 percent of the German companies surveyed said they have no plans
    to leave China within a year, and that the market continues to have high
    significance for them.

    Rising costs

    German companies are not the only ones facing rising
    labor costs Air VaporMax 97 Pas
     , so do many Chinese companies, said Wang Jun, deputy director
    of the Department of Information at the China Center for International Economic

    "As some local governments have raised the minimum wage, enterprises in
    labor-intensive industries were likely to be the first ones affected," he told
    the Global Times on Tuesday.

    Meanwhile Air VaporMax CS Pas
     , major first-tier cities including Beijing, Shanghai and
    Shenzhen have seen rapid growth in real estate prices, which also boosted
    workers' wages, he noted.

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