China increases minimum monthly wages despite soaring costs of US trade war
- Beijing increased its base by 80 yuan (US$11) to 2,200 yuan (US$311) per month from July 1, after Shanghai’s increase to 2,480 yuan per month from April 1
- China still lags behind the likes of the United States, but is still well ahead of the likes of regional rival Vietnam
Concerns over rising costs and the trade war with the United States may be hastening the exit of firms from China, but that has not stopped four provincial-level administrations from raising their monthly minimum wage for local workers this year.
Beijing is the latest to adjust its minimum wage, with the capital city increasing its base by 80 yuan (US$11) to 2,200 yuan (US$311) per month from July 1 following last year’s increase of 120 yuan, according to data released by the Ministry of Human Resources and Social Security.
The Southwestern municipality of Chongqing raised its minimum wage by 300 yuan to 1,700 yuan (US$241) as of January 1, while the business hub of Shanghai added 60 yuan to its base wage to take it to 2,480 yuan per month from April 1. The western province of Shaanxi also raised its monthly minimum by 120 yuan to 1,600 yuan from May 1.
The increase mainly affects the livelihoods of labour-intensive factory workers and low-end service jobs including cleaners, security guards and supermarket cashiers.
Shanghai leads the 31 provincial-level jurisdictions with its new monthly minimum wage, although the provinces that support the bulk of the nation’s export industry – Guangdong (2,100 yuan), Tianjin (2,050), Jiangsu (2,020), and Zhejiang (2,010) – also have competitive minimum wages compared to other provinces.