CHINA should slow down the pace of wage increases in order to maintain competitiveness, human resources vice minister Xin Changxing said Friday.

    Several Chinese provinces have slowed or halted rises to the minimum wage, as Chinese companies face pressure from rising expenses and weakening demand.

    “We should appropriately slow down the frequency of wage adjustments and the extent of wage rises to keep our competitive advantage,” Xin told a news conference.

    Six provinces and municipalities raised the minimum wage in the first half of this year, with increases averaging 11 percent, he said.

    In the first half of 2015, 13 regions raised the minimum wage, with rises averaging 13.5 percent, he said.

    China should encourage labor-intensive factories to move from coastal areas to less developed western provinces, alongside efforts to update industries to spur productivity, he said.

    The government is also looking to lower the social benefit cost burden on companies.

    Lower wage growth could also help Chinese companies better compete with overseas low-cost centers for export orders.

    Despite rising labor costs, China continued to gain global export market share last year.

    (SD-Agencies)