New Chinese Labour Law Give Employers the Jitters – Zhou Xin and Jason Subler

The Guardian looks at how ’s new law will affect foreign corporations working in the country:

A new labour contract law will push up costs in China next year and could force firms that are already struggling with rising expenses to shift production inland or out of China altogether.

The law will increase labour costs markedly and reduce the flexibility that has made China the world’s factory, businessmen and analysts say. [Full text]

China Law Blog also comments on the article, and on the law:

As China’s wages rise, the purchasing power of its citizens will no doubt rise as well and seeking to sell into China will benefit. China is serious about its desire to move from duckies to a more sophisticated economy. This new is simply a part of that inexorable transformation and companies that use well drafted written contracts with their employees and put an employee manual into place should have little to fear. [Full text]

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