this post was submitted on 21 Sep 2025
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I think it can be said to be less important given the much larger contradictions facing China. Not that wages are just unimportant in themselves.
I agree that the problem of wage growth and an non-export economy are intermingled, of course. I just think that this is a pretty easily solvable problem and CPC under Xi Jinping is aware of that. But raising wages is in contradiction right now to competing with the US on a global stage (because, instead of increasing wages which will be used for consumer goods, extra surplus is put back into larger infrastructure and future-oriented technology and weapons). Being an export economy is still the correct strategic choice until China is no longer massively out-accelerating the US on the global stage.