China May Export Inflation

Economists concerned anout rising oil and food prices can add another item to their list of fears, Chinese wage growth. In 2007, unit labor costs increased for the sixth consecutive year while the price of Chinese imports to the U.S. surged by 4%. With a global economy that has become reliant upon inexpensive Chinese manufactures, the question of whether Chinese wage inflation is transitory or part of a long term structural change is of great importance.

Snapshot asks, will wage growth add to China's inflationary threat?

Bureau of Labor Statistics - U.S. Import and Export Price Indexes
New York Times - Asian Inflation Begins to Sting
China Daily - China's 'Demographic Dividend' to End in 2010
Goldman Sachs - Globalization and Disinflation: Can Anyone Else ' Do a China'?
Business Week - How Rising Wages are Changing the Game in China