China Exports threatened

Manufacturers in China’s two main manufacturing areas fear that they will not be able to keep up production of exports due to a shortage of workers.  Factories in the Pearl River and Yangtze deltas are finding it difficult to recruit migrant workers, who are unwilling to live in these expensive areas unless they are given wage rises.  New Year in China on 3 February is expected to make the situation worse, as workers fail to return to the factories after their annual holiday.  In Guangdong, the authorities are considering a rise in minimum wages to help prevent further worker losses and are encouraging firms to re-locate in areas which are further inland.