In 2013, The Economist reported that wages in China had increased by 10-20% per year for the past decade. Competition between multinational corporations for increasingly experienced labour brought about rises in working condition standards and employees’ wages. Both the employees and the employers benefit from skilled workers, bringing about a concomitant improvement in conditions. To compete, managers had to upgrade living quarters and cafeterias to compete. If the largest factories are willing to pay more and expect fewer hours, the others must follow suit.
These improvements are fundamentally different from those brought about by government intervention. They necessitate an increase in experience and the value of the workers, meaning the changes are lasting and create wealth rather than deplete it.