China Labour Quarterly Issue 15

Workers Made Scapegoats of “Economic Downturn”: Guangdong Minimum Wage Frozen for Three Years

In 1993, China issued its first national regulations on enterprises’ statutory minimum wages and in 2004, it issued “Provisions on Statutory Minimum Wages” to further regulate it, requiring it to be reviewed once every two years, if not shorter. Except in 2009, when China was hit by the 2008 Financial Crisis and statutory minimum wage froze nationwide, all provinces have been in line with the legal requirement, i.e. adjusting statutory minimum wages once every two years. On 24 February 2017, the Guangdong Provincial Government issued a “Working Scheme on Reducing Costs for Real Economy Enterprises” (hereafter: the Scheme), stating that in order to reduce labour costs for enterprises, the statutory minimum wage would be reviewed once every three years and the statutory minimum wage for 2017 would be kept at the level of 2015. This is the first case in China, that minimum wage in a province remains unchanged for three years.

Interview with Dr Eileen Yuk-ha Tsang, an researcher of sex workers in China

China is estimated to have four to six million sex workers. However, the society still holds many misconceptions about this vast number of workers. In this issue of China Labour Quarterly, we are honoured to have Dr Eileen Tsang, assistant professor of Department of Applied Social Science of City University of Hong Kong to discuss the issue with. Dr. Tsang has conducted extensive research on sex workers in China in past years. Her research aims to understand sex workers from different perspectives and hopes to eliminate the prejudice the general public has developed against sex workers.

Finding the Culprit behind Sino-Hong Kong Clashes Class or Nationalist Conflicts?

In recent years, Chinese investment in Hong Kong has become a hot topic in the financial news. From McDonald's Corp. selling its controlling stake in its Hong Kong operations to CITIC Group, to China Telecom obtaining a MVNO (Mobile Virtual Network Operator) license in Hong Kong, all indicate that Chinese capital is taking up a sizeable share of the market in Hong Kong. According to Census and Statistics Department’s report released in December 2016, near half of Hong Kong’s foreign direct investment (FDI) in 2015 came from the British Virgin Islands, the Cayman Islands and Bermuda, the three major hot spots of offshore companies; FDI from China amounted to only 27%. It is believed that a large amount of Chinese FDI entered the Hong Kong market via offshore companies, to avoid being identified. The case of “the 88 Queensway Group” in 2015 illustrates how Chinese capital invests in foreign countries through offshore companies, its intertwined relationship between Chinese Government, state-owned enterprises and alleged corruptions.

Right to Communicate Violated: Labour Activist Detained and Isolated for 16 Months

Chinese labour activist Meng Han was sentenced to a prison term of 21 months by Panyu District Court of Guangzhou City on 3 November 2016,  for "gathering crowds to disrupt public order" as he helped organize workers to defend their rights. He was then sent to serve his sentence in Shaoguan Prison of Guangdong Province and is expected to be released in September 2017. Together with the detention prior the sentence, Meng has been detained for over 16 months. Since his detention on 3 December 2015, his family has attempted to visit him over a dozen times but in vain. No matter it was the No.1 Detention Centre of Guangzhou or Shaoguan Prison, the authorities denied his family’s rights to see him. In late March 2017, Meng’s parents visited Shaoguan Prison again and was told that Meng had been going through education and therefore could not be visited. Frustrated, his family made various complaints at the Bureau of Public Security and never received any feedback. Now, they start to feel extremely worried about Meng’s conditions.