This is just amazing. As we in the developed world move forward with austerity for the average wage earner and effectively reduce average worker wages the Chinese are doing something very different to fight the income gap between rich and poor.
Chinese ”officials revealed this week that the country’s powerful Development and Reform Commission is drafting a wide-ranging plan to increase the benchmark salary set by the government by 15% each year in the next five years.”
As a side note that does not sound like a nation who is going to allow their currency to appreciate significantly any time soon. They are going to take the rise in global commodity prices and balance that with mandated wage increases, I think!
The article however focuses upon the wage increases and tax cuts which are expected to raise domestic consumer spending which it might accomplish! However being savers my guess is that if the currency is going to stayed pegged or floated in a band around the US dollar that gold will be the continued saving vehicle of choice in China with demand for the metal just increasing.