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CHINA RULES. China's "sweeping" new labor law is yet one more surprising ingredient -- cardamom? -- in the globalization stir-fry. Since the text of the law hasn't been released yet, it's hard to tell how it will actually affect Chinese workers. China's government has made some highly visible steps in the right direction of late, including emancipating brick kiln slave laborers. Here's how foreign business reacted to the new legislation:
Companies argued that the rules would substantially increase labor costs and reduce flexibility, and some foreign businesses warned that they would have little choice but to move their operations out of China if the provisions were enacted unchanged.Right! They'll just pull up stakes and haul on over to one of those other rapidly expanding East Asian mega-economies. Unfortunately, it's hard to imagine that China's state union, the only game in town, will put too much pressure on companies. As of now, it doesn't even permit strikes.
--Matt Sledge
COMMENTS (4)
China may talk a good game -
Bok, bok bok. . .
Without enforcement - its a gimmick. . .
Enforcement in China is a joke.
Bok. Bok. Bok.
It's a gimmick.
Not buyin'
Posted by: China's Lack of Enforcement - Wordspeak | July 2, 2007 4:38 AM
Yee-haw. China joins humanity. Frees slaves.
Small number, but according to world media, an enormeous break thru.
God bless the freed slaves. . . but honestly, huh?
Posted by: China's Lack of Enforcement - Wordspeak | July 2, 2007 4:46 AM
While I'm unwilling to defend these business groups in their essential complaint, I think it's a bit unfair to ignore the fact that a few of the new regulations will impose far more restrictive and labor-friendly burdens on businesses than are found in the US, Canada, and many European countries. It's not that case that these reforms, if truly enforced, will be slightly nudging China into labor practices more aligned with Western liberal standards, but that in some cases it vaults them quite beyond those standards. That's a great thing from a leftist, labor-oriented position, but it does place dramatic burdens on foreign businesses operating in China.
However, insofar as the new regulations will simply decrease severe exploitation and inhumane working conditions, I find the business interests' complaints to be morally noxious and revolting.
In my opinion, there's a middle-ground between inhumane and near slave-labor working environments and the modern labor rights oriented and very humane working environment that the wealthy countries can afford and have largely adopted. That middle-ground rightly where developing countries like China should aim and that importing nations like the US should support. Insisting that developing nations adopt US/EU level protections is unrealistic, unfair, and counterproductive because the quickest way for developing countries to get from "there" to "here" is by the capital infusions of trade and investment which are driven by cheaper labor, production, and materials costs.
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Posted by: wanse | January 29, 2010 2:00 AM