In an article titled, "Labor Shortage in China May Lead to Trade Shift," the New York Times' David Barboza reports, "Persistent labor shortages at hundreds of Chinese factories have led experts to conclude that the economy is undergoing a profound change that will ripple through the global market for manufactured goods."

One of the major reasons for the labor shortage hitting Chinese factories? It seems that tax cuts have helped to spur growth in the country's rural regions.

Barboza writes:

Experts say the shortages are arising primarily because China's economy is sizzling hot, tax cuts have helped keep people working on farms, and factories are continuing to expand even as the number of young Chinese starts to level off.

Prosperity is also moving inland, and workers who might earlier have migrated elsewhere are staying closer to home.
...

Because of these shortages, wage levels throughout China's manufacturing ranks are rising ...

Yes, according to this Times report, tax cuts seem to be working in China.

Of course, if you believed the New York Times editorial page, you'd learn that tax cuts don't work in the US.

I wonder what Gail Collins, Paul Krugman, and the rest of the NYT editorial page crew think of this economically sacrilegious article appearing in the pages of the Times?