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China to Boost Minimum Wage 20% Annually for Five Years, Morning Post Says

China plans to increase its minimum wage by at least 20 percent annually in the next five years, more than doubling it by 2015, to increase spending power and consumption, the South China Morning Post said, citing Huang Mengfu, a government adviser.

The government wants to increase domestic demand to ease China’s dependence on exports and narrow the gap between rich and poor, the Hong Kong-based English-language newspaper said today, citing Huang, vice-chairman of the National Council of Chinese People’s Political Consultative Conference and chairman of the All-China Federation of Industry and Commerce.

The government will propose reducing fees and charges on factories in exchange for higher wages, the Post said.

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