Labor costs will rise

The implementation regulation for the Labor Contract Law issued last week by the State Council marks a much-needed effort to strike a balance between the protection of workers and labor market flexibility.

By issuing the regulation, the authorities made it clear that labor contracts with no fixed termination dates do not amount to unbreakable "iron rice bowls" that may severely hurt enterprises' vitality.

Chinese employers may now be breathing a sigh of relief, but they should by no means slow their preparations for rising labor costs.