Rising labor costs in China - Currency valuation?


Now that the labor costs are going up, and the age of the working population increasing, how will China keep its exports at the top levels.

2013: Rising labor costs in China

The birth control scheme has resulted in a check in population, but at the same time this makes fewer individuals available for labor, driving the costs up over time. To keep the economy booming, there could be 2 ways out:

  1. Remove birth control and let population grow again. Not sure if this is possible since the mindset of the population changes over time.
  2. Like always, devalue the yuan so the labor is still cheap and the exports continue at the same pace they are right now!
Which will be chosen? 



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