But some economists say the higher wages will not affect China's competitiveness, in the long term, as companies are likely to move inland to tap cheaper labor markets.

VOA: standard.2010.06.24

Chen said on Tuesday that there have so far been 5592 recorded cases of H1N1 in China's 31 inland provinces, but no one has yet died from the illness.

CNN: China set to provide first swine flu vaccines

Many firms still have room to develop at home, going inland into China's second and third tier cities.

BBC: Viewpoint: Why Chinese firms buy Western rivals

Moving inland means lower wages, but higher transportation costs on China's crowded highways and railroads.

WSJ: China's Rising Wages Propel Prices