Foxconn’s milestone for a rising China price

The scene may be set for the rebalancing that everyone has been screaming for – only via higher wages rather than a higher exchange rate, writes David Pilling
Outbreaks of industrial unrest at Honda and other big employers in Guangdong province, as well as a spate of apparent suicides among workers at Foxconn have highlighted factory shop floor conditions in China
Labour shortages for manufacturing workers have dominated headlines in the Chinese media as migrant workers return from their holidays, but some employers are proving more able to hire workers than others.
Shanghai‘s miniumum wage is to rise as Chinese officials seek to head off labour unrest amid fears that rising inflation could provide a further irritant in wage discussions
A group of 36 Chinese environmental groups has accused Apple of failing to address concerns over pollution and worker health issues in factories supplying components for its gadgets
New guidelines on collective wage negotiations will shift the power between employees and factory bosses
The unrest is putting increasing pressure on Japanese managers to review the way they run plants in China as the strikes refuse to subside
![]() | China unrest pushes up pay Richard McGregor, former Beijing bureau chief, says the ruling Communist party is allowing pay increases in the factories, but would crack down on any political protest or coordinated strike action |
![]() | Why China’s labour system is broken Han Dongfang, Hong Kong labour activist and founder of China Labour Bulletin, speaks with Tom Mitchell, South China correspondent, about what lies behind the recent labour unrest in southern China |
![]() | Foxconn grapples with wave of worker suicides Kathrin Hille, Beijing correspondent, lifts the veil of secrecy at Foxconn to take a rare look at conditions inside the factory city and to establish what may be driving the workers to desperation |

The scene may be set for the rebalancing that everyone has been screaming for – only via higher wages rather than a higher exchange rate, writes David Pilling
The upsurge of labour disputes in China since May suggests that the low-cost model of production is no longer robust but a rise in salaries will lead to an upsurge in domestic demand
The task of protecting rights might be declining sharply in developed nations. But they are increasingly common in the catch-up world – especially in China and elsewhere in south east Asia, writes John Lloyd
The industrialisation of China’s coast was history’s single greatest poverty-reducing phenomenon. The current factory relocations are no less momentous
Do the strike against Honda’s joint venture parts maker and the spate of suicides at Foxconn, the contract manufacturer, mark the end of the cheap labour era? Probably not. But China is changing.
Labour costs are only about 5 per cent of the retail price of China’s main exports – electronics and other consumer goods. The Chinese pay claims are not going to price an iPad out of anyone’s reach
The recent round of industrial actions that have plagued Toyota and Honda factories over the past month have subsided as thousands of workers grudgingly returned to their posts
Beijing may continue to offer cautious support to an emboldened workforce, though it will keep a watchful eye on wage inflation, writes David Pilling