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Economy

Will China's demographic time bomb end the low-inflation age?

Rising wages at 'world's factory' threaten widespread disruptions

Employees manufacture camera lenses for cellphones at a factory in Lianyungang, Jiangsu Province. As a key contributor to global supply chains, what happens in China could impact wide swaths of the global economy.   © Reuters

TOKYO -- As China faces a growing labor shortage and a rapidly aging population, concern is growing that rising wages in "the world's factory" could push up price levels globally and put an end to years of low inflation.

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