Mismatching Structures: A New Explanation for the “Unsatisfactory” Labor Conditions in Chinese Mining Companies in the Democratic Republic of Congo

Abstract

Ever since the Minerals-for-Infrastructure Deal valued at $6 billion was signed between Chinese companies and the Democratic Republic of Congo (DRC) Government in 2008, there have been criticisms on both the agreement itself and the working conditions for Congolese and Chinese workers in Chinese mineral enterprises in the DRC. Based on our fieldwork in Katanga Province of the DRC and interviews with dozens of local Chinese workers and managers in Chinese-run mining companies as well as staff working at the civil society organizations and governmental departments there, this research tries to investigate the real working conditions in Chinese mining companies. This paper concludes with three points. First, the so-called “wage gap” always asserted by the local workers is rather a phenomenon of employment structure than discrimination. In non-English-speaking African countries, a gap has actually emerged between the insufficiency of local human resources and the lack in localization capabilities of the Chinese multinational enterprises. Second, the compliance dynamics and mechanism of Chinese-run mining companies in the field of labor conditions were driven by local pressure groups including legislation, governments and NGOs, rather than by Chinese government or legislative system. What is interesting is that the rigid discipline of local laws and the abuse of discretion in the process of implementing laws have created a special pressuring structure and resulted in some complex consequences. Third, many Chinese-run mining companies in the DRC have quite different business structures from their branches in China. This is because of their financial investment aims and for the ease of enterprises’ transition. Therefore, it has led to their different perspectives of labor conditions and human resources strategy from mature MNCs. In summary, the research cannot draw a conclusion that the labor conditions are really terrible in Chinese-run mining companies in Katanga Province. However, it reveals that the Chinese government and Chinese enterprises are still not fully prepared for direct investment abroad, although “Going-out” strategy was raised 13 years ago.