Thursday, October 20, 2011


In my opinion, China’s success of the past three decades is mostly attributable to the exploitation of Chinese workers. That’s right, the world’s largest communist country has been exploiting its workers! There are an estimated 120 million migrant workers in China. These are not people from other countries. They were all born in China, mostly in rural villages. Yet, they are restricted from living and working freely in their own country.

Many of them have no siblings because their parents were limited by the one-child population control policy instituted during 1978. When they were teenagers, they swarmed out of the impoverished rural areas to the urban centers on the east coast of China, finding jobs in the booming export manufacturing industries.

These migrant workers provided the cheap (exploited) labor that transformed China into the world’s top manufacturer and exporter. Their pay was low, and they received few, if any benefits. They were second-class citizens subjected to the household registration system known as the “hukou,” which defines where people are officially registered to live and whether they are considered urban or rural residents. The distinction is crucial, because rural migrant workers who move to cities to work in factories and on construction sites are not eligible for many social benefits, including education for their children.

Many migrant workers are now young adults, who are very unhappy about their status and their standard of living. They are starting to demand better treatment. The government responded at the beginning of the year by raising the minimum wages by 15%-20%, and by promising that the next Five Year Plan will focus on improving the lives of Chinese workers. The resulting jump in labor costs has been exacerbated by a shortage of young exploitable new entrants into the labor force as a result of the one-child policy.

Higher nominal wages and rising labor costs have pushed the CPI up by 6.1% y/y through September, led by a 13.4% increase in food prices and a 12.3% increase in fuel prices. Anecdotal evidence suggests that inflation may actually be higher than shown by the official data. That explains why monetary and credit authorities have been tapping on the brakes since early last year. M2 (in yuan) rose 13.1% y/y through September, the slowest since May 2001. Bank loans are up 14.3%, the slowest since November 2008.

Small firms are getting squeezed by rising labor costs and much tougher credit conditions. They are being forced out of business. The authorities are scrambling to provide credit to them, fearing that rising unemployment along with erosion in the purchasing power of recently raised wages will exacerbate social unrest. No wonder that the Chinese stock market is down 15.7% ytd, among the worst performing in the world.


  1. NIce article. China ranks 71st in the world by nominal GDP per capita (8,643 US$). The top 10 countries by GDP (nominal) per capita are: Luxembourg, Switzerland, Macau, Norway, Iceland, Ireland, Qatar, United States, Singapore, Denmark, Australia...... & JdCooper Apple Tips

  2. of all the news blogs online, I still gravitate here because the articles are so much fun to read (yay, for humor!) and has a more richer audience participation. telegram

  3. This is my first visit to this website and I am enjoying here a lot. Wonderful blog post. This is absolute magic from you! I have never seen a more wonderful post than this one. You’ve really made my day today with this. I hope you keep this up. I have bookmarked this website. Such Beautiful amazing blog keep posting. I will be associated with this blog. Thank you!
    Gmail pva accounts

  4. A really amazing article. I love it so much! Thank you for sharing good luck! visit this website to know about nh623m paint gallon

  5. This comment has been removed by the author.

  6. Our professional writer will write your paper from scratch within a reasonable deadline. Here are the most demanded types of papers that we’ve been doing for college and uni students in 2021

  7. A great book or article has the power to alter the lives of many people. Please keep this information up to date as I appreciate you providing it. I'll be your constant companion. fnf

  8. That's it, a really great book and article for all, it's really powerful and informative for all.
    Thanks for sharing this information
    click here

  9. Instead of following the ages-old concept of BCS BCS Certification exam preparation using BAPv5 Certification voluminous books and notes, Crack4sure has introduced a brief, to-the-point, and most relevant content that is extremely helpful in passing any certification BCS BCS Certification exam.