BEIJING—Chinese Premier Wen Jiabao bluntly warned Japan that its companies operating in China should raise pay for their workers, part of a testy exchange on an issue that threatens to become a new irritant in relations between the Asian neighbors.
Mr. Wen's comments Sunday follow a call by Japan's foreign minister, Katsuya Okada, for an improvement in business conditions for Japanese companies in China. Mr. Okada raised the issue at a high-level Japan-China meeting on Saturday. A wave of labor disputes that has swept China this year has affected a number of high-profile Japanese investors, including Honda Motor Co. and Toyota Motor Corp.
Mr. Wen responded by telling Japanese officials that the background to labor troubles in China is the relatively low level of pay at some foreign companies, a Japanese foreign ministry statement said. "We would like [the Japanese government] to deal with this issue," the statement quoted Mr. Wen as saying.
