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>If you look at average wages in China, I think they have a long way to go to mop up labour slack.

Average wages in the Pearl River Delta don't seem to reflect this. Skilled wages are skyrocketing and even unskilled wages have upward pressure on them. The seemingly endless flow of cheap migrant labor is drying up.

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Isn't this because China has had internal migration controls for over 70 years, which are unheard of outside communist countries? Actually I think it's unheard of outside China.

Not really. The controlls are there to protect municipalities from having obligations to provide welfare and services to migrants. It doesn't actually prevent the migrants from travelling for work.

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