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China's blue-collar and office workers are getting rebellious and demand more money – successfully. In many Chinese provinces, wages increased by up to 20 percent since January of this year. While the local workforce is pleased, German companies buying or selling in the Middle Kingdom endured massive cost hikes in a short period of time. Thus, ZF Friedrichshafen now pays ten percent more. And when the transmission manufacturer moved within Shanghai in May, employees in company service for more than three years obtained a € 10,000 loan for moving – interest free, of course. But the loan will even be converted to a gift if they stay five more years with the company. Qualified personnel is becoming scarce even in China. Gerald Boess, the partner responsible for Asia at Kerkhoff Consulting: "Medium-sized companies buying in China should be looking for alternatives." Wage hikes present official policies: The government wants to boost domestic demand. Currently, Vice Premier Li Keqiang frequently emphasizes that private spending should increase. Losing out are companies depending on China – like Di-Li, manufacturer of microscopes. General Manager Jochen Distelkamp: "The parts we need are only manufactured in China. There are zero alternatives."