“You or David mentioned yesterday, workers were not returning to their jobs, here is why.

“All the best, hope to see you in April”

Eoin Treacy's view Thank you and I also look forward to meeting you in California. Here is a section from the attached article focusing on Chinese internal migration:

The shift in migration patterns may also reflect a rebalancing of China's economy. Domestic demand has made a bigger contribution to China's growth in recent years, driven by heavy investment in infrastructure and property-To serve this expanding internal market, firms do not need to nestle close to a port. The result is a fast-narrowing wage gap between the coast and the interior.

In 2004 coastal wages for migrant labourers were 15% higher than inland, according to a survey by the National Bureau of Statistics. Now, many workers in Sichuan say that taking into account transport costs and higher living expenses on the coast, less well-paid jobs closer to home are beginning to look much more, competitive. A s are Chengdu and its environs, as well as in Chongqing, aimed at making it easier for; migrants in urban areas to enjoy the same.' welfare benefits as registered city-dwellers. Lack of access to such benefits^ particularly to urban schools, subsidised housing and health care, is a big problem for migrants.

An IMF report from January 2010 pointed out how China has come to a point where it gets less benefit from infrastructure development than it does from supporting the development of the population. Social security, healthcare and education represent increasingly important goals for a society intent on moving up the value chain in terms of manufacturing.

It was an early priority of the current Chinese administration to foster development in the inland provinces. This was touted as an attempt to close the wealth gap between the interior and the coast. This article suggests they have been at least partially successful. The migration of low cost manufacturing inland can be considered a partial solution to the problem of higher wage demands.