China: Labor Conditions and Unrest (CRS Report for Congress)
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| Release Date |
Oct. 15, 2001 |
| Report Number |
RL31164 |
| Report Type |
Report |
| Authors |
Thomas Lum, Foreign Affairs, Defense, and Trade Division |
| Source Agency |
Congressional Research Service |
Summary:
China's labor conditions have become a key variable affecting its domestic politics and
economic policies, U.S. human rights policies toward China, and U.S.-China trade. Deepening
economic reforms in the People's Republic of China (PRC) since the early 1990s have imposed
hardships upon many urban industrial workers, who were once among the most
economically-privileged social classes in the country. While raising living standards for many
Chinese, the reforms have eroded the material well-being and job security of many workers in
state-owned enterprises (SOEs). Bankruptcies of many SOEs have led to an unprecedented urban
unemployment rate of between 10% and 20%. Consequently, labor demonstrations and protests have
become a frequent occurrence in some Chinese cities. Many experts predict that China's entry into
the World Trade Organization will lead to even more plant closings, economic dislocation, social
unrest, and opposition to reforms. In addition, egregious labor rights violations have reportedly
taken place in many factories operated by foreign investors in China's export zones.
The Chinese government has attempted to implement laws and programs that protect labor
rights and provide social welfare benefits while punishing labor rights activists and independent
union organizers. Labor demonstrations generally have been localized and their goals have been
economic rather than politically-motivated. Nonetheless, the PRC government is worried about the
potential social and political effects of continued or growing labor unrest.
U.S. Congressional goals and concerns regarding Chinese labor include supporting labor rights
in China and preventing the import of goods from the PRC that were made from prison, sweatshop,
or child labor. P.L. 106-286 , authorizing permanent normal trade relations treatment (PNTR) to the
PRC, establishes a Congressional-Executive Commission on the PRC to monitor China's
compliance with international human rights standards, including worker rights. Furthermore,
China's entry into the World Trade Organization is likely to benefit some Chinese economically
while hurting others, thereby generating some resistence in China to complying with WTO
agreements. Some experts and Members of Congress argue that Chinese workers lack basic rights
and have become more exploited under market-oriented reforms. Others contend that U.S. trade and
investment have improved the lives of many Chinese workers, helped to created a new middle class
with progressive political values, and produced a large market for American goods.
