Globalisation, Foreign Direct Investment and Their Impact on Labour Relations and Regulation: The Case of China

Abstract

This paper examines foreign direct investment (FDI) and the impact on labour relations and labour regulations in China in the context of globalisation. It seeks to identify the relationships of the process of globalisation, the behaviour of multi-national enterprises (MNEs) and labour relations. Issues such as labour recruitment, forms of employment status, wages and welfare, human resource management (HRM) and the role of trade unions in foreign owned enterprises (FOEs) are examined. The paper also tackles the problems within FOEs and the response of the Government at both central and local levels. It concludes by identifying the major issues related to the relations between the globalisation and changes of labour relations and regulations, and the possible direction for developing economies to use FDI more effectively in an institutionalised environment.