First, the Chinese government's policy to give top priority to the development of agriculture and annul the agriculture tax has paid off. Rural residents are earning more from farming.
Second, the government's strategy of boosting development in central and western regions has achieved initial success.
The rural surplus labor has more employment opportunities in the manufacturing industries in towns near their home.
Third, China's earlier recovery from the economic recession has significantly increased orders for coastal manufacturing plants, which are eager to retrieve the workers they laid off when the economic crisis struck.
This situation is certainly a blessing for rural people. Their family income will rise considerably.
However, some economists have grumbled that the rising wage standards for rural migrant workers may increase China's labor costs in general and thus diminish the advantage of Chinese products globally. These worries are groundless and unfair.
China's advantage in labor costs will not diminish substantially in the foreseeable future. The average wage level is 10 times lower than that in the United States. It will take a long time for Chinese labor costs to catch up with developed countries. And China's labor resource will remain mammoth for a considerably long time, given the continual growth of the nation's population.
Second, even if labor costs rise to a considerably high level, it is a reasonable and welcome change. Why should the laborers' earnings be forever kept at low levels?
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