Outlook on Light Manufacturing in China: March 2016

March 4, 2016 Posted by China Briefing Reading Time: 4 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.

Provincial authorities in Guangdong, Zhejiang and Fujian have issued new local regulations encouraging their citizens to marry earlier and have more children. Benefits under these local rules may include greater marriage leave and longer maternity and paternity leave entitlements. Employers are encouraged to review their internal policies and procedures related to these matters and to continue monitoring efforts for any further changes.

Following approval by the National People’s Congress meeting, the final text of China’s 13th Five-Year Plan (2016-2020) will be fully released this month. Among other goals, the plan includes an oversight mechanism for an emission permit system and a water management system. The full implications for light manufacturing will be better understood when the text is released this month but should be closely monitored.

On the exchange rate, Chinese monetary authorities say they will abstain from sudden renminbi devaluations as a tool to support the slowing economy and forecasts of a seventh consecutive month of manufacturing contracting.

Guangdong: The province is looking to implement a regulation providing women with 1-2 days off when suffering menstrual pain. The regulations being proposed in Guangdong say that a medical certificate for pain would be required. The certificate would be valid for 6 months.

Zhejiang: Companies sourcing in or near Hangzhou should note the upcoming G20 summit meeting there in September as there may be supply chain implications. Though it is still six months off, the Hangzhou environmental protection bureau, on orders from the central government, is rigorously inspecting the emissions of businesses in the city, mainly in heavy industries. Some 75 dyeing plants in Shaoxing are to be closed and renovated before before the meeting with another 10 to be shut down in the Shaoxing Paojiang Economic and Technology Development Zone. Working in concert with the environmental protection department, the police have vowed to “punish polluters”.

Fujian: Nothing to report

On the Horizon

April 2-4 – Factories closed for Ching Ming Festival
September 4-5 – G20 summit held in Hangzhou

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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