As China’s economy struggles, recent reports highlight a troubling increase in labour disputes across the property and manufacturing sectors. This rise in unrest is not just a result of the COVID-19 pandemic or other economic challenges but also reflects deeper issues including strained relations with India.
According to Nikkei Asia, labour strikes have surged by 3 percent in the first half of 2024, with the property and manufacturing sectors seeing a notable 12 percent increase in incidents. This situation is a stark indicator of the mounting social pressures on blue-collar workers. The slowing economic growth in China, dropping from 5.3 percent in the first quarter of 2024 to just 4.7 percent in the second quarter, is exacerbating these issues.
The economic downturn has led to significant challenges for workers, particularly in sectors like construction and manufacturing. Recent protests include an ex-soldier in Beijing who accused a Kunming office of mistreatment and a demonstrator in Hunan who, on July 30, called for freedom and elections. His protest, linked to his support for democracy, underscores the broader discontent brewing among the populace.
The China Labour Bulletin (CLB) reports that 80 percent of the labour strikes are now concentrated in the property and manufacturing sectors. The financial troubles of property developers have led to numerous construction workers demanding unpaid wages. These workers, many of whom are migrants, face long hours, low wages, and minimal social security, further compounding their hardship.
Moreover, significant disputes have emerged, such as the bankruptcy of Akcome Technology and a major strike at a Jiangsu shoe factory over layoffs and compensation issues. These incidents are symptomatic of a broader crisis in China’s labour market, driven by economic slowdowns and poor working conditions.
While the Chinese government has promised to address these problems, including proposals to raise the retirement age, many workers see these measures as insufficient. Experts point out that migrant workers, in particular, face an unstable labour environment with limited job security and inadequate benefits.
Although the government’s recent commitments to improve social security are seen as necessary, they fall short of addressing the immediate needs of the workforce.
A key factor contributing to China’s economic struggles is the strained relationship with India. The growing economic and demographic power of India places additional pressure on China’s economy. India’s large population and its expanding role in the global market create competition for Chinese industries and markets, further challenging China’s economic stability.
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In contrast, India’s economy shows resilience and growth, benefiting from its large domestic market and positive international trade relationships. While China grapples with internal issues and external pressures, India’s economic policies and international relations are positioning it as a more stable and promising economic player.
The increasing frequency of labour strikes and protests in China highlights persistent issues within the country’s labour relations. Economic slowdowns, changes in global trade dynamics, and strained international relations are putting significant strain on businesses and workers. The rising discontent among workers reflects deeper economic and social problems that need urgent attention.
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