China: Global Shift and Outsourcing

• Global shift had important role in reducing extreme poverty

  From 88% in 1981 to only 0.7% in 2018
• 2000-2010: conditions for workers remarkably improved and disposable income for workers of urban citizens rose threefold following a series of protests.
• 2010: workers walked off production lines for Honda, Toyota, Carlsberg and other legal brands which caused a wage increase of between 30-65%.
• Many less desirable 'sweatshop' jobs have migrated to Bangladesh where labour costs are much lower
• PROS:

  • Improved conditions so people enjoy large income groups
  • More people can afford phones and fridges
  • Car ownership increased from 1-in-100 families to 1-in-15 since 2000
  • Increase in China's econ growth driven by this domestic consumption
  • Technology transfer occurred since early days of manufacturing led industrialisation
  • Local companies adopted technologies and management techniques brought by TNCs to China
  • Chinese banks = some of the world's largest TNCs e.g ICBC
• CONS:

  • Early years: many workers exploited in sweatshops
  • Approx 2550 metal workers exploited in Yongkang lost a limb/finger per yr due to dangerous factory conditions
  • Since then, conditions improved but some workers still continue to be exploited.
  • Environment suffers - 'airpocalypse' is an air pollution phrase by Western media.
  • Pollution decreases life expectancy by 5 years.
  • WHO is concerned with very high avg levels of small particulate matter aka PM 2.5
  • Particles settle deep in lungs = causes cancer and strokes