On October 10, 2013 the China Center convened member delegates for a half day for a “deep dive” discussion into China’s super-difficult labor market, seemingly run-away wage structure, and remedies for the pain and pressure points MNCs can expect to feel in the short-and medium term future. The Center invited third party expert – Steven Yu of Towers Watson – to present on the topic. After the presentation, members shared their experience with one another, in private, Conference Board-style, about how to best deal with the labor cost challenge – sharing real experience about what works and what doesn’t, and solutions under consideration. China Center experts facilitated the discussion. This briefing paper highlights the key insights and discussion points of the session.