China’s economic growth is slowing down, with state government setting its 2013 target GDP growth rate to around 7%—the lowest in 20 years—and employees witnessing an average salary increase of 8.5% and 14.3% turnover in 2013. This, according to Aon Hewitt’s Human Capital Intelligence Report for 2013, which covers more than 4,000 companies in forty major industries, from high-tech and real estate, through to logistics, and manufacturing.
Previously, both indicators experienced rapid growth over six consecutive years. Interestingly, there are 8.5% and 10.9% increments, respectively, in the salaries of foreign and domestic companies in China for 2013. While the global headquarters of foreign firms became more stringent in their efforts to control salaries, domestic companies put great efforts into enhancing their salary competitiveness and focusing on the Chinese market. Consequently, the salary gap between foreign and domestic companies is gradually reducing.
Paul Arkwright
Publisher
