Globalization, China's free (read bonded) labour market, and the Chinese trade unions

Abstract

After two decades of economic reform during which China developed a strong export thrust into the world market, an industrial labour market has taken shape in China. But it is not really a free labour market in that deposits are generally required of workers when they commence employment. For some migrant workers this has led to a condition equivalent to being bonded, which enables Asian foreign investors to establish harsh labour regimes in the factories they manage. The Chinese official trade unions are at a crossroads – do they side with the workers, management or with the party-state?