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  • China Layoffs en-masse begin

    http://news.bbc.co.uk/2/hi/asia-pacific/7735205.stm

    China moves to stem mass layoffs
    Chinese police officers stand guard as hundreds of workers gather outside a government building after a large toy factory closed in Guangdong province, southern China, on 17 October 2008

    China fears fast-rising unemployment could trigger social unrest

    Companies in two Chinese provinces, Shandong and Hubei, have been told they must seek official consent if they want to lay off more than 40 people.

    The order highlights the Chinese authorities' concern over mounting job losses.

    As China's main external markets plunge into recession and export orders shrink, layoffs have multiplied in the country's big manufacturing regions.

    In Shandong alone, nearly 700,000 people have lost their jobs this year.

    In southern Guangdong, tens of thousands of firms have closed, sparking off reverse migration to the countryside by redundant workers.

    China's economic growth has slowed sharply this year to around 8 percent - high by world standards, but much less than the double-digit figures seen for years.

    If the one-off boost from the Olympics is factored in, even that number may be further reduced.

    Drastic wage cuts

    China's manufacturing index contracted dramatically in October, indicating an abrupt slowdown.

    It is kicking in at a time when the country's factories normally rev up production to serve western markets in the run-up to Christmas.


    If the government doesn't agree to my layoff plans, what can I do? I can't afford to pay them all
    Shandong factory manager

    The Chinese authorities are keen to avoid social instability, seen as a source of labour and political unrest.

    The human resources controls imposed in Shandong and Hubei are an attempt to put bureaucratic obstacles in the way of mass layoffs.

    But it is unclear how effective they will be.

    "The factories are not getting enough orders, so some workers have nothing to do," Chinese media quote a Shandong factory manager as saying.

    "I have been thinking of getting rid of some of them to cut costs. But if the government doesn't agree to my layoff plans, what can I do? I can't afford to pay them all."

    The alternative may be drastic wage cuts.

    In one factory in Guangdong, salaries have been reduced by up to 75%.


    Although that is hardly a sustainable pay level for most workers, they may have to wait until the economic climate improves in China's foreign markets.

    The crisis has helped expose the extent to which the country has become dependent on the outside world - a far cry from the Mao-era slogan of self-reliance.
    http://news.bbc.co.uk/2/hi/asia-pacific/7713594.stm

    Its kaleidoscoping a bit. As one layers upon layers adds up, a buildup in resentment will ferment ........

    Perhaps paranoid and cynical on my part.
    Originally from Sochi, Russia.

  • #2
    Interesting.
    could start something major like a revolution, though that is probably unlikely.
    Any ideas how this could turn out?
    There is no such thing as free lunch

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    • #3
      Not as bad as you think.

      Comment


      • #4
        Originally posted by Rodinga View Post
        Interesting.
        could start something major like a revolution, though that is probably unlikely.
        Any ideas how this could turn out?
        no no no, don't say sth like that. revolution hurts. people in austrilia stay in peace for hundred years, you don't know how a real revolution feels. the best way is renovation, solve problems and amend flaws gradually. i know renovations in certain facets in china, such as renovation in political management system, are too slow, i still wish no revolution. revolution is devastationg, it will hurt chinese people more than economic recession.

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        • #5
          The taxi drivers of my city went on strike last week. At that 2 days,I felt the roads that used to crowd were clearer.

          This strike happened in my city became a countrywide "fashion" , several cities' taxi drivers followed.

          Of course,Those strikes were controled now.

          Comment


          • #6
            Originally posted by Tomluter View Post
            The taxi drivers of my city went on strike last week. At that 2 days,I felt the roads that used to crowd were clearer.

            This strike happened in my city became a countrywide "fashion" , several cities' taxi drivers followed.

            Of course,Those strikes were controled now.
            heh control is always an illusion.

            The problem is that if food production drops ( in China, but more important Globally for a few years as it has) then there will be a revolution in China. Since at this point they will need to keep importing more of it grain,rice,etc.
            http://news.xinhuanet.com/english/20...t_10175219.htm

            BEIJING, Oct. 10 (Xinhua) -- In August, China's top land regulator urged local authorities to safeguard 1.8 billion mu (120 million hectares) of the country's farm land fearing a grain shortage. Thursday, local authorities responded to the request.
            (and yes I read the bumper crop expectations in China it still doesn't fix the problem because demand still outstrips supply. also reassurance of overpromising underdelivering tend to persist...)

            [please remember that the grain they are talking about is probably for food consumption not for animal consumption forrage grain different types easier to grow the latter and its generally in higher abundance]
            Originally from Sochi, Russia.

            Comment


            • #7
              Tough times for everyone.
              If you are going through hell, keep going. W Churchill
              Lets hope the upturn is as steep as the slowdown...

              Comment


              • #8
                It's reported that tens of thousands of people get laid off in coastal areas such as Guangdong and Shandong provinces.

                This, of ourse, has caused great concern to the Chinese government, which always puts social stability on top of its agenda.

                When increasingly more people are starting to worry about their daily butter and bread, where does social stability lie?

                Comment


                • #9
                  Originally posted by Tomluter View Post
                  The taxi drivers of my city went on strike last week. At that 2 days,I felt the roads that used to crowd were clearer.

                  This strike happened in my city became a countrywide "fashion" , several cities' taxi drivers followed.

                  Of course,Those strikes were controled now.
                  Yes, lately cities like Chongqing, Sanya and Lanzhou all witnessed the strike by taxi drivers, with whom I have great sympathy.
                  They have long work hours to earn their bucks, yet the best part of it went to the taxi firms. That is just unfair and unjust!
                  Their strike definitely has my support!;)

                  Comment


                  • #10
                    Originally posted by Shuimo View Post
                    It's reported that tens of thousands of people get laid off in coastal areas such as Guangdong and Shandong provinces.

                    This, of ourse, has caused great concern to the Chinese government, which always puts social stability on top of its agenda.

                    When increasingly more people are starting to worry about their daily butter and bread, where does social stability lie?
                    Correct me if I am wrong but doesn't the future of the CCP rely on the continued massive growth of the Chinese economy, which in turn is reliant on Western markets. With the recent down turn in the West and growth decreasing heavily in China (still very large by Western standards though), will there be a problem for the CCP as regards social stability in the near future if people carry on getting laid off like this?

                    Also how is this being reported by the Chinese state media?
                    Nulli Secundus
                    People always talk of dying for their country, and never of making the other bastard die for his

                    Comment


                    • #11
                      Originally posted by Shiny Capstar View Post
                      Correct me if I am wrong but doesn't the future of the CCP rely on the continued massive growth of the Chinese economy, which in turn is reliant on Western markets. With the recent down turn in the West and growth decreasing heavily in China (still very large by Western standards though), will there be a problem for the CCP as regards social stability in the near future if people carry on getting laid off like this?

                      Also how is this being reported by the Chinese state media?
                      Yeah, you are right, the future of the CCP relies on the continued massive growth of the Chinese economy. If people carry on getting laid off like this, it surely means social unstability and upheaval, which the CCP cannot comfortably afford to face up to.:( Nowadays, given the easy access to the Internet, eruption of any social unrest in any part of the country can be instantly known across China, which would undoubtedly put great pressure on the government. So you can understand that the government is trying hard to maintain rapid economic growth, which is essential to ensure job opportunites for million-numbered labor forces every year.

                      As I observe it, news of factory closures and people laid off is reported much more openly in on-line media than in conventional media like newspapers and TV. The latter is always trying to play down the enormity of the grave situtation we now face. The reason for this, I think you surely know.

                      Comment


                      • #12
                        Originally posted by Shuimo View Post
                        Yeah, you are right, the future of the CCP relies on the continued massive growth of the Chinese economy. If people carry on getting laid off like this, it surely means social unstability and upheaval, which the CCP cannot comfortably afford to face up to.:( Nowadays, given the easy access to the Internet, eruption of any social unrest in any part of the country can be instantly known across China, which would undoubtedly put great pressure on the government. So you can understand that the government is trying hard to maintain rapid economic growth, which is essential to ensure job opportunites for million-numbered labor forces every year.

                        As I observe it, news of factory closures and people laid off is reported much more openly in on-line media than in conventional media like newspapers and TV. The latter is always trying to play down the enormity of the grave situtation we now face. The reason for this, I think you surely know.
                        Thank you for the information.
                        Nulli Secundus
                        People always talk of dying for their country, and never of making the other bastard die for his

                        Comment


                        • #13
                          Originally posted by cyppok View Post
                          heh control is always an illusion.

                          The problem is that if food production drops ( in China, but more important Globally for a few years as it has) then there will be a revolution in China. Since at this point they will need to keep importing more of it grain,rice,etc.
                          http://news.xinhuanet.com/english/20...t_10175219.htm



                          (and yes I read the bumper crop expectations in China it still doesn't fix the problem because demand still outstrips supply. also reassurance of overpromising underdelivering tend to persist...)

                          [please remember that the grain they are talking about is probably for food consumption not for animal consumption forrage grain different types easier to grow the latter and its generally in higher abundance]

                          In China ,the problem of crop supply is just dormant trouble,It is a potential risk,If every peasant leave his cultivated lands to go cities.

                          Nobody worry about his food will become a problem,so far.

                          The most serious social problem in China, is about fair and unfair.

                          Comment


                          • #14
                            Hi, Tomluter, mind I ask which city of Sichuan province do you live in?

                            Comment


                            • #15
                              Now the economy is critical, The crisis has damaged China' economy up seriously. Everyone lay their hope in 4 tillion investment from Government .

                              But I think the worst situation is almost here.

                              And we need not to worry about a large numbers of "migrant workers" or "rural labourers" who lost their work at the crisis. They will not been starved to death. At least,they can be back to the countries to grow their crops.

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