China’s competitiveness sharpens as wages continue growing

Chinese apparel exports to the EU and US were cheaper,relative to other garment exporting countries,  in the latest month for which there is data than at any time since 2009. The volume of apparel imported into both territories from China also grew year on year. Though Chinese wages in 2012 grew more slowly than in earlier years – but Standard and Chartered Bank predicts higher wageinflation in 2013. Businesses’ reaction implies lower prices owe more to falling manufacturer margins than to rising productivity