Commentators suggest that the cost advantage of setting up in the Eastern areas of China is decreasing. While minimum wages remain relatively low, skilled workers and office workers attract a premium.

The minimum wages in Beijing, Shanghai and Guangzhou increased during 2006. Currently they are:

Beijing: RMB640 (approx. US$82) per month for full-time employees or RMB3.82 (approx. US$0.49) per hour.

Shanghai: RMB750 (approx. US$96) per month for full-time employees or RMB6.50 (approx. US$0.83) per hour.

Guangzhou: RMB780 (approx. US$100) per month for full-time urban employees or RMB4.66 (approx. US$0.60) per hour.