Rec'd reading: The China Price, by Alexandra Harney

    I'd like to see this book get as widespread attention as possible. 

    It is an engagingly reported look at working conditions in the south China industrial factories, which appears to be balanced and should help to ground discussion about our and other countries' policies towards China on a better factual foundation.  The book is subtitled "The True Cost of Chinese Competitive Advantage".  Harney, who freelances now, was the Financial Times' south China correspondent between 2003 and 2006 and speaks Mandarin Chinese.

    I'll share a few things I learned from it below.  I'd be most interested if denizens have come across contrary information and points of view that seem credible.   

    But before doing that, I'd like to recommend that those of you who are interested in what is going on in China should definitely check out recent blog posts from our fellow veteran cafe denizen, Tom Wright, at his <a href="http://tpmcafe.talkingpointsmemo.com/talk/blogs/tom_wright/">blog page</a>  Tom has been traveling about China of late (and may still be there, not sure about that) and has, as he typically does, lots of interesting observations.

    A few things I learned from Harney's book:

    *the labor laws on China's books passed by its central government are far more substantial than I would have thought. The problem is that law enforcement efforts, which are localized, are paltry--and everyone knows it.

    *There is growing consciousness and unhappiness among Chinese workers dissatisfied with their working conditions and lack of say on workplace issues, which a number of NGOs in Hong Kong have built on to stimulate interest in various forms of worker representation.

    *the central government, at least in the abstract (minus real resources to enforce the laws they enact they don't appear to be that serious about it, however--it may be more for international show), appears interested in improving working conditions and workers' opportunities for some say in what goes on in the workplaces. A fundamental tension is that local governments depend for their revenues on development-maximizing policies, which runs headlong into enforcing the labor and environmental laws on the books because doing the latter worsen the (in this case, primarily foreign) investment climate in particular. Sound familiar? Non-unionized, low wage US states pursued this race to the bottom strategy only to see the jobs go to Mexico and then East Asia.

    *India, Pakistan, and Vietnam are among the countries with lower wages than China which multinationals (mostly, for now) talk about moving to if the Chinese "weaken the investment climate" (i.e., address labor and environmental problems with laws and policies that are actually enforced). China retains some competitive advantages vis a vis these countries--including clustering of supply chains. Vietnam has independent labor unions which reduce its attractiveness to multinationals contemplating jumping off the China ship.

    *Harney believes that when the Chinese government sets its mind to an objective, it is usually pretty successful at achieving it. There is considerable unrest--expressed in the form of large numbers of public protests--in the country over major, major environmental problems, air quality and contamination of drinking water supplies in particular, that are destroying the health and lives of growing numbers of Chinese citizens. This is the most immediate source of pressure on the government re environmental problems, and it appears to be growing.

    *The one-child family policy adopted in the late 1970s is just now starting to contribute to labor shortages which could put workers in a somewhat more favorable position to bring about positive workplace change. The second generation of migrant workers shows signs of the sorts of cultural changes seen in Japan and other once-poor countries which experienced dramatic economic growth--rising and more demanding expectations in terms of what they want out of their lives in particular.

     

     

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