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Wednesday, June 13, 2007

YaleGlobal: Letter from China:

The downfalls of the Chinese economy:

The Last 'Competitive Advantage': Letter From China ( click here to read article)

Workers of the West resent the transfer of manufacturing jobs to China, as companies pursue cost advantages and low wages. With good jobs hard to come by, the Chinese have little choice but to work long days for low wages. Some employers withhold wages altogether. Allowing competition to take its course and viewing jobs of any sort as the best way to alleviate poverty, the Chinese government has long resisted enacting or enforcing policies that could protect workers. Instead, the government keeps the cycle going: purchasing US Treasury bills, encouraging the US spending spree, feeding the US deficit and keeping interest rates low. Few in the West protest the harsh labor conditions in China, with so many corporations and investors reaping big profits and consumers enjoying cheap goods. But according to Han Dongfang, a unionist with the China Labor Bulletin, a Hong Kong journal, China’s
own legal system may eventually end exploitative labor practices, forcing employers to recognize and pay the full value of work done in China. Han and his colleagues have tried about 30 cases and won most.The number is impressive for an authoritarian government – establishing precedents, putting ruthless employers on notice and giving workers hope for a better future. – YaleGlobal

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