User:Theush.k/sandbox

In the 1990s, the yearly growth rate of China’s manufacturing industry average per person real wages was 7.1%, and the annual growth rate of labor productivity was 6.75%, showing these two targets almost equal. However,yearly average real growth rate of labor costs including non-staff costs reached 10.4%, and it was 1.5 times of yearly average growth in labor productivity. For all this, in the late 90's, the relative level of China’s labor costs was still lower than the relative level of international labor productivity. In 1999, the labor productivity of China was 9.08% of the U.S rate, 21.98% of South Korea’s rate and 51.50% of Mexico’s rate; during the same time,labor costs of China is 3.94%,11.27% and 35.66% of these countries’ rates respectively.The relative level of China’s labor costs is only equal to 40%-70% of the labor productivity’s relative levels in some developed countries such as the U.S (Advantages Trade ,2007). As a result, China can make more products for less money. Besides, people should also understand clearly that the inexpensive labor force is still competitive in the international trade market at present. Therefore, the government must face up to its advantages and disadvantages, take measures and enhance the international competitiveness of cheap labor conscientiously.