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Chinese Labour Unrest Spreads

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Is this the beginning of the end of cheap Chinese labour & hence cheap goods from China?

Looks pretty inflationary as far as consumer goods go.

See "Chinese labour unrest spreads" http://www.ft.com/cms/s/0/28c02300-7381-11df-ae73-00144feabdc0.html?ftcamp=rss

See also http://news.bbc.co.uk/2/hi/business/10271559.stm

It's ironic that a trade union "Solidarity" brought about the beginning of the end of communism in Eastern Europe. No doubt the Chinese communist party will do everything not to let trade unions get out of hand in China. It makes one wonder what the Western media will say if the Chinese use the army against striking workers to protect the economic interests of Western companies in China?

Tianasquare.jpg

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Is this the beginning of the end of cheap Chinese labour & hence cheap goods from China?

Looks pretty inflationary as far as consumer goods go.

See "Chinese labour unrest spreads" http://www.ft.com/cms/s/0/28c02300-7381-11df-ae73-00144feabdc0.html?ftcamp=rss

See also http://news.bbc.co.uk/2/hi/business/10271559.stm

It's ironic that a trade union "Solidarity" brought about the beginning of the end of communism in Eastern Europe. No doubt the Chinese communist party will do everything not to let trade unions get out of hand in China. It makes one wonder what the Western media will say if the Chinese use the army against striking workers to protect the economic interests of Western companies in China?

Tianasquare.jpg

I said this would happen the other day in another thread.

Workers in places like China and India will need to organise for better wages and conditions like has been done in the UK and USA in the past.

Companies will move production to countries with even cheaper labour like Vietnam and those workers will need to organise for better wages and conditions and so on.

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Looks like the Chinese workers have got fed up, and want more money. Inflation is very difficult to hide, people can see prices going up.

The re-igntion of their property bubble when the Chinese govt decided to flood the economy with money must have made them particulalry happy. It won't the companies that are rolled over - it will be the government if they are careful.

Edited by OnlyMe

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The re-igntion of their property bubble when the Chinese govt decided to flood the economy with money must have made them particulalry happy. It won't the companies that are rolled over - it will be the government if they are careful.

How? There's no Chinese Yeltsin. Worse case scenario the PLA takes over. The vast, vast majority of disturbances in China are about very specific grievances such as this. Going nationwide is impossible as the party will view it as counter revolutionary and a challenge. However, Tiananmen happened during a difficult inflationary period IIRC.

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How? There's no Chinese Yeltsin. Worse case scenario the PLA takes over. The vast, vast majority of disturbances in China are about very specific grievances such as this. Going nationwide is impossible as the party will view it as counter revolutionary and a challenge. However, Tiananmen happened during a difficult inflationary period IIRC.

Sounds a bit like "House prices only ever go up"! I think the real danger for China / western investors in China is that it does go national. Nationwide strikes and high inflation. It would be China reliving what the West went through in the 1970s. History sometimes repeats itself. A Yeltsin or a new Mao could easily and quickly emerge. In today's new media/techonolgy age it would be a lot easier for them to emerge than ever before. Even a dog present at a few riots in Greece has a Facebook page!

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how dare they expect a share of the productivity gains?

There should be more money but fewer workers if productivity exceeds demand. The less productive the higher the

wage costs of each unit.

The UK overall productivity

133.gif

http://www.statistics.gov.uk/cci/nugget.asp?id=133

If you graph employment numbers against manufacturing productivity in the UK it looks like a big X

Still China has 40% in agriculture which used to be 70% 40 years ago and we have under 2% and could feed ourselves if needed

and used to have 40% of the labour force in agriculture a hundred years ago.

Eventually it should be Agriculture to Manufacturing and then Services which is where the UK is at. But I don't know what China

will end up paying it's workers if they aren't needed for anything, a bit like the UK.

Edited by Northwest Smith

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lots of work to do and not enough workers, hey presto wages are going up.

I look forward to there being a decent standard of living in China. It is simple economics really.

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lots of work to do and not enough workers, hey presto wages are going up.

I look forward to there being a decent standard of living in China. It is simple economics really.

In Asian economies when there is a shortage of labour the solution is to work your employees until they drop dead, in Japan there is a phenomenon called karaoshi where workers working 100 hours a week (and only get paid for 50 of them) simply die on the production lines of exhaustion. The Japanese government and corporations hide this.

This working culture has infected Korea and is spreading into China too.

Although we don't like to think price controls ever work surprisingly the CCP has managed to enforce them for a very long time, grain has been price controlled (through the supply chain) for a very long time.

So your employees are working 60 hours a week still means you can squeeze another 40 out of them maybe even 120 hours a week. They are too tired to kick up a fuss, you can also remove the 1 hour lunch breaks and the sleep time they still have in China.

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It will provide a measure of entertainment to those on here when the masses of Chinese decide to sell their stocks. Homogeneous people groups tend to act together, all at the same time.

Chinese history is characterised by the rule known as "Mandate from heaven". Whoever wins was supposed to win. They have violent changes from one thing to another but always end up in the same place in the end and off they go again. They are now at the point where a violent change is about due.

Fidelity's guru got here a few years too late I am afraid. :(

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The so-called 'trade union' sided with the company against the workers.

That's because all recognised trade unions in China are controlled by the CCP. So quelle surprise. With regards to your comment about going nationwide, basically the resources of the party vastly outweigh the resources of anyone outside of the party. The CCP can shut communications swiftly. Any change will come from within the system or only if the ordinary party workers lose the faith.

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That's because all recognised trade unions in China are controlled by the CCP. So quelle surprise. With regards to your comment about going nationwide, basically the resources of the party vastly outweigh the resources of anyone outside of the party. The CCP can shut communications swiftly. Any change will come from within the system or only if the ordinary party workers lose the faith.

Sounds like the conditions for change in any developed country!!!

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There are thousands of riots every year in China, you will never see anything about them in the MSM though.

Got to keep up the 'free' market globalised paradise facade.

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Must be tough spending your life making stuff you'd like, but can't afford to buy.

too true

even the plastic dog poop would be a weeks wages :lol:

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In the long term I fully expect an average Chinese worker to earn more then an average UK one.

You can measure it in local currency or in baked beans. Does not matter.

There is simply no way around this.

The only question to dispute is how quickly will this happen.

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  • 141 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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