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Minimum Wage Comparisons Between China and India

Japan is in a rather different league; they manufacture things that others can't. A lot of factories/companies in Mainland China, Taiwan, Thailand and South Korea etc depend on the Japanese supply chain.

One example of an Indian factory owner that I know may help explain why Indian wage advantage means very little on the global stage. The Indian owner used to have some 20ish workers (most of them work as temporary workers without any contract) in his electrical sockets factory/workshop, and he paid them less than 3000 rupees a month (at current rate it is about $55). But like many other small business owners in India, he had to deal with the authorities. To avoid paying proper taxes, he didn't provide payslips to workers, and he got sued by his workers for not paying wages(he claimed he did but could not provide evidences), so he had to bribe the judge to get away. Anyway at the end, his products cost 40-50% more than the imported ones, and most of the costs did not come from labor cost. He had no incentives to upgrade the factory, and eventually he just stopped production; now he imports electrical sockets directly from China, puts his own tags and labels on them, and claims that these are made in his factory.

I think there is a reason for the manufacturing to still stay in China.

Wage is an issue, but for the bosses, output/wage ratio is more important.

If you pay a person (say, an Indian or other non-Chinese) that cost you $5 a day, who can only produce 1 piece of work, I'd rather pay another person (say, a Chinese) $10 dollars a day who produces 3 pieces of the same work.

We can't just compare the wage level.

That is why even Japan has very high wage level, but they still keep very good manufacturing industries. And there is no sign that they will let them go because of high wage in that country.
 
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It is an advantage and a sign that India can produce goods cheaply in than China in the coming years.
 
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China's GDP may be 5 times larger, but average china salaries are not 5 times higher. It is just 2-3 times
:hitwall:

India does not even come close to Pakistan when it comes to minimum wages let alone china. suggest india should reduce its minimum salaries even more to give china tough time in capturing world manufacturing contracts.:)
 
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today is the first day of my new job,i signed the contract and got to know the minimum wage here is 1600 RMB,shenzhen

today is the first day of my new job,i signed the contract and got to know the minimum wage here is 1600 RMB,shenzhen
 
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today is the first day of my new job,i signed the contract and got to know the minimum wage here is 1600 RMB,shenzhen

today is the first day of my new job,i signed the contract and got to know the minimum wage here is 1600 RMB,shenzhen
Who will stay in Shenzhen if one only pay for 1600 RMB???
more than 800million jobs in China, many companies hide the wage to avoid paying tax, workers are hard to find now.
look at a Recruitment website, you will see the wage they supply at RMB for general jobs
【找工作 - 全国招工信息|招工简ç«*|招聘信息】- ä¸*劳网
 
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