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Hourly compensation costs in China are still low by international standards; however, costs have increased from about 2 percent of the U.S. level in 2002 to 5 percent in 2009. Compensation costs rose particularly rapidly after 2006 as both base wages and increased requirements for social insurance drove costs up.
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A new era for manufacturing in China | McKinsey
The leaders of the multinational's China R&D group thought they'd identified a lucrative niche for a new, low-cost medical-diagnostic product—but were denied funding by the head office back home.
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