Rising worker activism in 'world's workshop' challenges China

Discussion in 'General Trading Discussion' started by Fredrick Jones, May 29, 2015.

  1. Fredrick Jones

    Fredrick Jones Well-Known Member

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    In the past the Chinese government could keep things like this secret. But for them to enter the global economy they need internet communications, that means they can not longer hide incidents like they did in the past. Wages in China and rights for workers in China have been increasing by leaps and bounds. As wages increase this means a potential for a domestic market.

    How the Chinese Communist Party will deal with these problems is unknown. The situation is similar to when South Korea was run by a military dictator, he managed to set South Korea on the right path, but eventually he was assasinated by the military and a democracy was installed.

    With increasing social tension in China it is either an opportunity or a crisis depending on how things turn out.

    https://uk.news.yahoo.com/rising-worker-activism-worlds-workshop-070737403.html#TbbTDRE
     
  2. gracer

    gracer Senior Investor

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    China undeniably has one of the biggest and cheapest workforce in the world, which makes it yield bigger as it produces and exports more products to other countries. The increasing social awareness of its citizens regarding worker's rights could turn out to be a positive thing for them depending on how the Communist Government reacts. Most of the results of this will greatly depend on the government of China.
     
  3. JoshPosh

    JoshPosh Guest

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    This should interesting to see unfold. China is catching up with the rest of the world and we will see the people actually start to mobilize and possibly start to assemble. The more they get involved with the internet, the more we will see upheaval of the current stability in worker relations.
     
  4. Corzhens

    Corzhens Senior Investor

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    I am also predicting that China's economy will slide when everything stabilizes. Most of China's graduates have no work but they don't relish handling a blue collar job. For the lowly workers, asking for wager increase is almost unionism which is prohibited in the communist country. But since wages are going up, businesses may turn to other countries for cheap labor.
     
  5. Fredrick Jones

    Fredrick Jones Well-Known Member

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    10 years ago this was true, today no longer so. China is an extremely diverse country and the level of wages differs vastly across the country. So people living in the outer provinces which are more developed make 10 times what the people in the most remote provinces make. If you would compare wages in real dollars, many Chinese engineers and professionals are making almost the same amount as their western counterparts.

    Compared to many surrounding Asian countries, Chinese wages are now 2 to 3 times as high and increasing. The reason why foreign investors are attracted to China is because of the massive amount of infrastructure China offers. China has high speed rail which can transport goods at twice the rate of USA and massive ports. Most other countries lack these things.
     
  6. Rainman

    Rainman Senior Investor

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    Should the underpaid workers start getting increases and they demand for more then China is going to find it hard to readjust, raise the prices of some of their products and in doing so, they'll probably sell less, make less money than they used to, etc. How would that affect their economy? Or maybe they have some safeguard in place?
     
  7. Onionman

    Onionman Senior Investor

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    Wages are rising so fast that it's becoming a net importer of skilled labor from other parts of Asia in some cases. Certainly Taiwanese graduates are moving across in large numbers - they have the Mandarin language so it makes sense for them. Things are certainly changing. Whether we'll see anything in the near term is hard to tell. The key for the authorities is that they are relying on the economy to chug along at the 7%+ rate in order to maintain stability. If they aren't able to maintain things, we'll see some big changes.
     

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