Outlook on Light Manufacturing in China: December 2015

December 9, 2015 Posted by China Briefing Reading Time: 3 minutes

The below is a sample of Cascade Asia Advisor’s monthly report on light manufacturing across emerging Asia, available for purchase through the Asia Briefing bookstore. The report is a 4-5 page executive-ready assessment and outlook designed to help companies anticipate labor risks and dynamics across key manufacturing countries in Asia. Countries of coverage include Cambodia, China, Indonesia and Vietnam.

Worker strikes and protests across China reached an all-time high in November, spurred on by workers’ cash needs for the upcoming holidays and exacerbated by an increased number insolvent factories that haven’t paid wage arrears. Protests tend to spike in the months surrounding Chinese New year, but this year has been worse in an environment where factories are experiencing declining sales and cash reserves are dwindling. We expect strikes to intensify in the coming weeks due to disputes over payment of year-end bonuses and further spurred by stricter labor inspections from local government.

Guangdong: The Legislative Affairs Office of Guangdong finished off a month long solicitation of public opinion on December 3rd for a draft law that would provide up to a day of paid leave each month for menstrual pain to female employees that have been given certificates by doctors. The Legislative Office is now compiling the information gathered and will make a decision whether or not to implement it in the near future.

Zhejiang: Timely payment of year-end bonuses will avert unnecessary friction with workers.

Fujian: Fujian has seen a surge in protests over the past three months due to the payment of wage arrears. Protests by footwear workers account for roughly 20% of these which may increase in the coming weeks with the intensity of the holiday production schedule.

On the Horizon

December 10, 2015 – International Human Rights Day
January 1 – 3, 2016 – Factories closed for New Year’s Day

About Us

Cascade Asia Advisors is a boutique advisory firm focused on Southeast Asia. They help businesses anticipate risk and make better decisions using forward-looking, localized intelligence. For information about developments mentioned in this report, please contact them at info@cascadeasia.com.

Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email china@dezshira.com or visit www.dezshira.com.

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