"We believe that the key for China over the next decade or two is boosting household incomes," the report said. "Strong wage increases in recent years have helped."
As the size of the country's labor force continues to expand at a slower pace, China's comparative advantages will be diminished.
"We hope that labour-productivity growth - thanks to education, better equipment, etc - will continue to mean labour can be paid more of the returns to growth," the report said. "This will be a fundamental driver of household income growth."
Updated: 2012-10-11 13:01
( China Daily)