Pay hike won't bring back US jobs

A hike in minimum wages following high-profile labor strikes at Honda plants and suicides at Foxconn factories in China have prompted some Americans to think that this latest development will help bring jobs back to the United States.

That seems to be only wishful thinking.

The basic pay increase of 20 percent in China would only raise the minimum wages in Shanghai, which has the highest base wage on the Chinese mainland, to 1,344 yuan, or less than $200 a month. It is only a fraction of what a US worker receives under the $7.25 federal minimum wages per hour standard.