Hey, I'd like to clarify a couple of points about prices on goods and commodities which I feel often are misunderstood.

1. Prices of goods and price of labour do not correlate. As in decrease/increase in wages do not lead to a change in price of goods. That feels counterintuitive, yet if examined closely you see that price of something is always at the point of maximum profit. So increase in price will lead to less sales and less profit regardless of labour cost.

To give you an example - you run a SaaS business with annual $100 price for your most popular plan. You have profits enough to pay you and a couple of developers a salary. Your competitor has similar offering with the same price. Your developers demand a pay increase of 15% - which will put you at a loss. What options are for you without magically getting more market share, getting outside investment etc:

A. Cave-in to the wage increase and operate at a loss.
B. Increase price of your most popular plan which would lead to less profit and you will have to operate at even greater loss.
C. Somehow fire developers and find new ones.

This leads to the conclusion that wages and profit margins have inverse causal relationship. Price of goods is determined by supply/demand and non-market forces (regulation etc).

2. Price of labour has no causal relationship with productivity. Price of labour does not have any specific market differences from any other commodity. If the demand for labour is high and supply is low (think software developers) and no monopsony (one buyer market) then the price will go up. I live in Eastern Europe which became a major outsourcing hub in last 15 years or so. Salaries for devs have gone up at least 1000% (number of zeroes is correct) compared to time before outsourcing boom.

If there is a monopsony - there is no competition for labour only one company hires people - then the wage would be as low as it can get regardless of productivity. Big employers like Amazon and Walmart can perform crazy fits of neo-taylorism without any kind of wage increase - because they can.

If supply of labour increases - then wages will fall, regardless of productivity. The whole reason behind offshoring, outsourcing.

3. Why wages can rise in China:

A. A lot of what they do right now demands a higher-skilled workforce which is not in abundance. Low in supply != high productivity.

B. China is not only a big factory that supplies goods for the West. As profits are invested into institutions - new opportunities appear. Chinese goods were seen as cheap copies 30 years ago, now it is often price/quality competitive products such Oneplus phones, some of the Chinese cars or even market leaders such as DJI drones and gimbals. All of that requires skilled engineers, designers, marketing people.

C. Non-market forces. CCP can pressure business owners to pay better wages or to better comply to labour standards. I'm not sure if that's happening to be honest but that's possible.

As a sidenote: If you want to know more about the disconnect between wages and productivity you can read David Ricardo's magnum opus On the Principles of Political Economy and Taxation from 1817, it is not an easy read yet I think in many ways it yet be refuted (in good faith).