Fears have been growing recently for China's competitiveness.
On one hand, investors fret that the appreciation of the yuan is eroding the competitive edge of China's factories compared with their rivals in Southeast Asia.
On the other, they worry that the contraction in China's working age population will push wages up to uncompetitive levels.
At first glance, it looks as if their fears are justified on both counts.
The yuan has strengthened by 34 per cent against the US dollar since it was revalued in June 2005. Reported by S.China Morning Post 5 hours ago.
On one hand, investors fret that the appreciation of the yuan is eroding the competitive edge of China's factories compared with their rivals in Southeast Asia.
On the other, they worry that the contraction in China's working age population will push wages up to uncompetitive levels.
At first glance, it looks as if their fears are justified on both counts.
The yuan has strengthened by 34 per cent against the US dollar since it was revalued in June 2005. Reported by S.China Morning Post 5 hours ago.