China's low-cost labor has long been a very important advantage when making global investment decisions. When considering locations to make inject foreign investments, minimum wages in China are one helpful gauge when comparing different areas in the country. Furthermore, to determine the true labor cost, it is important that investors consider industry-specific wage levels, access to incentives and availability of the right talents.

Most of the provinces identify different classes of minimum wage levels for different geographic areas. These wages are based on the relative degree of development in the area as well as the cost of living. As such, there is a higher minimum wage class for the provincial capital and most developed cities in China. In contrast, there is a lower class for rural areas and smaller cities. Many Chinese regions often choose to increase their minimum wage to keep pace with the increase in the cost of living.

Some of the cities with the highest minimum wages in China are Beijing, Shanghai, Shenzhen, and Tianjin. Shanghai has the highest minimum wage in China at 2,590 yuan ($375) per month. Next is Shenzhen, which has a minimum wage of 2,360 yuan per month. Beijing also has a minimum wage of 2,320 yuan per month (as of January 2023).