China's known as 'the factory of the world', partly because its low wage economy is attractive to manufacturers.

But as the country's wealth grows, so do the demands of its workers.

Andrew Livingstone reports on one province attempting to placate its low wage earners by regulating wage agreements with workers and their companies.

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Amidst much upset over low wages in China, Shenzhen municipality, one of China's top production hubs, will increase its minimum wage to 11-hundred yuan, or about 160 U.S. dollars per month beginning in July.

While it's a positive boost for workers in China, it means the cost of doing business there will go up. And likely, those costs will trickle down to the consumer, making made-in-China products like sneakers and electronics more expensive.

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The tax hike - of 6 to11 percent – could affect an estimated 350 million smokers across China. Although it took effect from the beginning of May it has only just been made public. In addition, a new tax of 5 percent was also imposed on cigarette wholesalers.
 
China's Tax Administration says the goal is “to increase government income and improve the cigarette taxing system”. It estimated the tax rise would bring in an extra $4.5 billion for the government.

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