Labor Law in China
Outline
Demographics
China is located in south Asia and is the most populous country in the world with over 1.3 billion habitants. This statistic is one of the advantages that foreign companies and businesses have when operating in china, especially manufacturing companies. The reason this is an advantage is because businesses can pay lower wages while easily replace workers in their factories when it is needed. China has a single party government and is a socialist government. This is another advantage for businesses because they don’t have to deal with elections, candidates, and the changes of government every several years. Also, because the Chinese government realizes the importance of foreign investment, they encourage foreigners to invest in China and provide incentives in construction, property, and taxes. The capital of the country is Beijing. The official language is Mandarin but other languages such as Cantonese are spoken.
Economy:
The Chinese currency is the Renminbi or Chinese Yuan. 1 USD is equivalent to 6.23 Chinese Yuan as of December 9, 2012. $8.9 trillion USD was the GDP in 2012. The GDP value of China represents 11.77 percent of the world economy, reported by the World Bank group. Its unemployment rate is 4.11%, which is relatively low for such high populous country.
The labor force of China included about 800 million workers in 2012. According to the research, at least 130 million of those workers are from relatively poor areas to capital cities and industrial bases to work. Many families of these workers were relied on the earnings for living in a hometown. China has long been known for a surplus of unskilled workers and a shortage of professional workers due to the incomplete structure and limited resources input to the education system. However, in the past several years, some companies in the major industrial hubs happened to face a problem of the shortage of the labor. Thus, many companies had to raise wages 10
Demographics
China is located in south Asia and is the most populous country in the world with over 1.3 billion habitants. This statistic is one of the advantages that foreign companies and businesses have when operating in china, especially manufacturing companies. The reason this is an advantage is because businesses can pay lower wages while easily replace workers in their factories when it is needed. China has a single party government and is a socialist government. This is another advantage for businesses because they don’t have to deal with elections, candidates, and the changes of government every several years. Also, because the Chinese government realizes the importance of foreign investment, they encourage foreigners to invest in China and provide incentives in construction, property, and taxes. The capital of the country is Beijing. The official language is Mandarin but other languages such as Cantonese are spoken.
Economy:
The Chinese currency is the Renminbi or Chinese Yuan. 1 USD is equivalent to 6.23 Chinese Yuan as of December 9, 2012. $8.9 trillion USD was the GDP in 2012. The GDP value of China represents 11.77 percent of the world economy, reported by the World Bank group. Its unemployment rate is 4.11%, which is relatively low for such high populous country.
The labor force of China included about 800 million workers in 2012. According to the research, at least 130 million of those workers are from relatively poor areas to capital cities and industrial bases to work. Many families of these workers were relied on the earnings for living in a hometown. China has long been known for a surplus of unskilled workers and a shortage of professional workers due to the incomplete structure and limited resources input to the education system. However, in the past several years, some companies in the major industrial hubs happened to face a problem of the shortage of the labor. Thus, many companies had to raise wages 10