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Changing State and Labour Relations in
China:
Chinese and Workers Struggles
Dream
Chris K.C. Chan
Chinese University University of Hong Kong;
Asia Monitor Resource Center
Since 2008: Three Key
Questions
 How have state and labour relations in China
been changed in the past decade?
 What are the new initiatives of Xi Jinping?
 How have these initiatives impacted on labour
rights and social protection?
Soci-Economic Policies under Hu
 The discourse of ‘Harmonious Society’ by Hu
Jintao (2003-2012)
 The cancellation of agriculture tax and
introduction of agriculture subsidy since 2006
 RMB 4 trillion (USD 585 billion) public spending
in 2008
 Labour Contract Law, Employment Promotion
Law, Labour Dispute Mediation and Arbitration
Law (2007)
 Trade union direct election, collective
bargaining (2010)
 Legalization of labour NGOs (2011).
 Social security net: Social Insurance Law (2011)
2012: The Economic Limit
 Economic slowdown
 Outflow of FDI
2012: The Political Limit
 The labour protests for higher salary and trade
union democratization
 The environmental protests against population
 The peasant protests against land grabbing
Xi’s “Chinese Dream”
 Xi Jinping: Replace Hu in 2012
 By 2021: ‘moderately prosperous
society’
 2021-2035: ‘ a global leader in
innovation’
 2035-2049 :‘ become a global leader
in national strength and international
influence’
Soci-economic policies under Xi
 Strengthen control over civil society: National Security Law
(2015); Charity Law (2016); Foreign NGO Management Law
(2017)
 Freezing minimum wage (e.g. Guangdong announced in 2017
that the minimum wage would be adjusted 3 rather than 2
years.)
 Lowering the standard of social insurance (e.g. pension
insurance to 16% or low from 2019)
 Economy upgrading: tertiarization (e.g. sharing economy, e-
commerce and logistic industry); automation (e.g. Made in
China 2025; robotization )
Wage: raising but slowdown
Minimum wages
in Shanghai
Wages in
manufacturing
Populist authoritarianism?
 Party-Mass Service Centers are established in
factories and communities
 Populist authoritarianism: “The Mass Line
continues to serve as a linkage between the
state and society in the post-Mao China and a
powerful instrument for political mobilization
and regime legitimacy”.
Unemployment rate: declining
A contradiction?
 Economic growth has slowed down since 2012;
 Net FDI inflow into China has declined;
 The growth rate of minimum wage has also declined.
But
 Wages in manufacturing keep rising;
 Unemployed rate is low.
Why?
--how these have been achieved?
1 A service-based economy?
GD
P
Workforce
Informalization in ‘sharing’
economy
 China sharing economy development annual reports
 (State Information Centre, 2016-2019)
years services provider
(million)
platform employees
(million )
GDP (billion, RMB)
2015 50 5 1956
2016 60 5.85 3452
2017 70 7.16 4920
2018 75 5.98 2942
didi (Chinese Uber) registered driver in 2016:15
million
a didi driver survey (2016) shows 42.24% were in full-
time while 57.76% in part-time job.
2: Escalating labour conflicts
 Number of labour disputes: 589,244 in 2011 to 813,859
in 2015 (an annual increase of 8.41%. )
 Collective cases: increased by 12.25% annually from
2011 to 2015 (National Bureau of Statistics, 2016).
 Workers’ strikes increased from 185 in 2011 to 2,726
cases in 2015 (CLB, 2016).
Pension as a key demand
Participation rate of migrant workers in social insurance
Year Pension Medic
al
Unempl
oyment
Work
Injury
Maternit
y
2008 9.7% 13.1% 3.7% 24.1% 2.0%
2009 7.6% 12.2% 3.9% 21.8% 2.3%
2010 9.5% 14.3% 4.9% 24.1% 2.9%
2011 13.9% 16.7% 8.0% 23.6% 5.6%
2012 14.3% 16.9% 8.4% 24.0% 6.1%
2013 15.7% 17.6% 9.1% 28.5% 6.6%
Since 2013: migrant workers asked for
compensation and proper implementation of
pension insurance.
3. Crackdown on civil society
1. 2015: 7 NGO activists
were criminalized.
2. 2018-2019: Nearly 50
workers,
students/graduates, NGO
workers were arrested.
4. Belt and Road Initiative (BRI)
 To provide overseas opportunities for its
State Owned Enterprises (SOEs)
 To reduce the SOEs’ overcapacity in heavy
industry and construction sector
 To booth Chinese economic growth
 To create dispatched job opportunities
Conclusion: ‘Chinese dream’ and
Chinese Workers
 1. The rise of service-based economy and
informalization of labour force.
 2. The escalation of labour conflict with
pension insurance as a key demand for migrant
workers.
 3. The crackdown of labour NGOs and the
return to populist authoritarianism.
 4. The ‘belt and road initiative” (BRI) and
dispatching oversea workers.
Stocktaking: Labor markets in
Europe and Asia, Informal Sector,
precariousness, platform economy,
wages, and geo-politics of Labor
rights, democracy and
representation

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Changing State and Labour relations in China

  • 1. Changing State and Labour Relations in China: Chinese and Workers Struggles Dream Chris K.C. Chan Chinese University University of Hong Kong; Asia Monitor Resource Center
  • 2. Since 2008: Three Key Questions  How have state and labour relations in China been changed in the past decade?  What are the new initiatives of Xi Jinping?  How have these initiatives impacted on labour rights and social protection?
  • 3. Soci-Economic Policies under Hu  The discourse of ‘Harmonious Society’ by Hu Jintao (2003-2012)  The cancellation of agriculture tax and introduction of agriculture subsidy since 2006  RMB 4 trillion (USD 585 billion) public spending in 2008  Labour Contract Law, Employment Promotion Law, Labour Dispute Mediation and Arbitration Law (2007)  Trade union direct election, collective bargaining (2010)  Legalization of labour NGOs (2011).  Social security net: Social Insurance Law (2011)
  • 4. 2012: The Economic Limit  Economic slowdown  Outflow of FDI
  • 5. 2012: The Political Limit  The labour protests for higher salary and trade union democratization  The environmental protests against population  The peasant protests against land grabbing
  • 6. Xi’s “Chinese Dream”  Xi Jinping: Replace Hu in 2012  By 2021: ‘moderately prosperous society’  2021-2035: ‘ a global leader in innovation’  2035-2049 :‘ become a global leader in national strength and international influence’
  • 7. Soci-economic policies under Xi  Strengthen control over civil society: National Security Law (2015); Charity Law (2016); Foreign NGO Management Law (2017)  Freezing minimum wage (e.g. Guangdong announced in 2017 that the minimum wage would be adjusted 3 rather than 2 years.)  Lowering the standard of social insurance (e.g. pension insurance to 16% or low from 2019)  Economy upgrading: tertiarization (e.g. sharing economy, e- commerce and logistic industry); automation (e.g. Made in China 2025; robotization )
  • 8. Wage: raising but slowdown Minimum wages in Shanghai Wages in manufacturing
  • 9. Populist authoritarianism?  Party-Mass Service Centers are established in factories and communities  Populist authoritarianism: “The Mass Line continues to serve as a linkage between the state and society in the post-Mao China and a powerful instrument for political mobilization and regime legitimacy”.
  • 11. A contradiction?  Economic growth has slowed down since 2012;  Net FDI inflow into China has declined;  The growth rate of minimum wage has also declined. But  Wages in manufacturing keep rising;  Unemployed rate is low. Why? --how these have been achieved?
  • 12. 1 A service-based economy? GD P Workforce
  • 13. Informalization in ‘sharing’ economy  China sharing economy development annual reports  (State Information Centre, 2016-2019) years services provider (million) platform employees (million ) GDP (billion, RMB) 2015 50 5 1956 2016 60 5.85 3452 2017 70 7.16 4920 2018 75 5.98 2942 didi (Chinese Uber) registered driver in 2016:15 million a didi driver survey (2016) shows 42.24% were in full- time while 57.76% in part-time job.
  • 14. 2: Escalating labour conflicts  Number of labour disputes: 589,244 in 2011 to 813,859 in 2015 (an annual increase of 8.41%. )  Collective cases: increased by 12.25% annually from 2011 to 2015 (National Bureau of Statistics, 2016).  Workers’ strikes increased from 185 in 2011 to 2,726 cases in 2015 (CLB, 2016).
  • 15. Pension as a key demand Participation rate of migrant workers in social insurance Year Pension Medic al Unempl oyment Work Injury Maternit y 2008 9.7% 13.1% 3.7% 24.1% 2.0% 2009 7.6% 12.2% 3.9% 21.8% 2.3% 2010 9.5% 14.3% 4.9% 24.1% 2.9% 2011 13.9% 16.7% 8.0% 23.6% 5.6% 2012 14.3% 16.9% 8.4% 24.0% 6.1% 2013 15.7% 17.6% 9.1% 28.5% 6.6% Since 2013: migrant workers asked for compensation and proper implementation of pension insurance.
  • 16. 3. Crackdown on civil society 1. 2015: 7 NGO activists were criminalized. 2. 2018-2019: Nearly 50 workers, students/graduates, NGO workers were arrested.
  • 17. 4. Belt and Road Initiative (BRI)  To provide overseas opportunities for its State Owned Enterprises (SOEs)  To reduce the SOEs’ overcapacity in heavy industry and construction sector  To booth Chinese economic growth  To create dispatched job opportunities
  • 18. Conclusion: ‘Chinese dream’ and Chinese Workers  1. The rise of service-based economy and informalization of labour force.  2. The escalation of labour conflict with pension insurance as a key demand for migrant workers.  3. The crackdown of labour NGOs and the return to populist authoritarianism.  4. The ‘belt and road initiative” (BRI) and dispatching oversea workers.
  • 19. Stocktaking: Labor markets in Europe and Asia, Informal Sector, precariousness, platform economy, wages, and geo-politics of Labor rights, democracy and representation