He expects salary growth will still stay above 10 percent in his company this year.
Human resources experts and business owners believe that salary growth is a long-term trend in China, as the country aims to double per capita income from 2010 for both urban and rural residents by 2020.
"To absorb rising labor costs, we will continue to make efforts to raise production efficiency and increase profit margins through product innovation," Lou said.
Feng said that beside employers' efforts, reform of income distribution is urgently needed to address income disparity in China.
Media reports said a long-awaited plan to reform the country's income distribution system is widely expected to be released later this year.
"Companies will also benefit from moderate salary growth, as Chinese residents with higher disposable incomes are likely to spend more in the future," Feng said.
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