Archive for May, 2013

01/05/2013

* China’s new mental health law to make it harder for authorities to silence petitioners

SCMP: “The director of Xinjiang‘s largest mental health institution has welcomed a new law, which went into effect on Wednesday, banning involuntary inpatient treatment for many people deemed mentally ill.

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“Seventy to 80 per cent of the patients have been forcibly admitted to the hospital,” said Xu Xiangdong, director of the Fourth People’s Hospital in the regional capital Urumqi, the Yaxin online news portal reported on Monday.

“Because of this increased consideration for patients’ rights, [the figures] will change fundamentally,” he said, adding that it would put an end to frequent episodes of people being wrongfully declared mentally ill.

The new law, which has been debated for a quarter of a century, is meant to crack down on local authorities aiming to silence petitioners and troublemakers by arbitrarily declaring them mentally ill and locking them up in mental health wards.

Under the law, patients must first give their consent to being hospitalised, except in cases in which they could harm themselves or others.

If patients are still forcibly confined, they or their guardians have the right to seek a second opinion. Forced hospitalisations for reasons other than severe mental illness are banned.

Last week about 200 health practitioners from the region were sent to Xu’s hospital to be trained in the new provisions on patients’ rights stipulated by the new law, the Xinjiang Daily reported.

Two million people in Xinjiang live with mental disabilities, Xu estimated, amounting to more than 9 per cent of the population in the economic backwater of China’s remote northwest.

That compares with almost 8 per cent of China’s population diagnosed with some form of mental illness, according to the Ministry of Health in 2011. A largescale 2009 study estimated a much higher national average at 17.5 per cent.

In Xinjiang, authorities have not been able to provide adquate resources to deal with the increasing number of people living with mental disorders. Xu told the Yaxin portal in 2011 that the number of mentally ill patients had increased by 20 to 30 per cent annually over the last years.

In Monday’s report, he said less than 5 per cent of the two million mentally ill could receive treatment because of a lack of resources and trained staff.

Two years earlier, the regional government had reported plans to build 15 new mental hospitals and to expand current ones. Until now, only one additional hospital in Kashgar has been completed, the Yaxin report said.

In March, a gruesome murder of a seven-year-old Uygur boy by a Chinese man has caused tensions among ethnic communities in the Turpan prefecture east of Urumqi. The man had been declared mentally ill to prevent ethnic revenge attacks, locals told Radio Free Asia.”

via China’s new mental health law to make it harder for authorities to silence petitioners | South China Morning Post.

01/05/2013

* China Manufacturers Survive by Moving to Asian Neighbors

WSJ: First in a Series: China’s Changing Work Force

“In a corner of a sprawling factory in this coastal southern city, sewing machines that stitched blouses and shirts for Lever Style Inc.’s clients now gather dust. As the din on the factory floor has dropped, so, too, has the payroll. Over the past two years, Lever Style’s employee count in China has declined by one-third to 5,000 workers.

The company in April began moving apparel production for Japanese retail chain Uniqlo to Vietnam, where wages can be half those in China. Lever Style also is testing a shift to India for U.S. department-store chain Nordstrom Inc. JWN -0.34% and moving production for other customers.

It’s a matter of survival. After a decade of nearly 20% annual wage increases in China, Lever Style says it can no longer make money here.

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A board shows workers’ statuses at each production line at Lever Style’s factory in Shenzhen, China.

“Operating in Southern China is a break-even proposition at best,” says Stanley Szeto, a former investment banker who took over the family business from his father in 2000.

Companies from leather-goods chain Coach Inc. COH -0.53% to clogs maker Crocs Inc. CROX -0.94% also are shifting some manufacturing to other countries as the onetime factory to the world becomes less competitive because of sharply rising wages and a persistent labor shortage. The moves allow the companies to keep consumer prices in check, although competition for labor in places such as Vietnam and Cambodia is pushing up wages in those countries as well.

At Crocs, 65% of its colorful shoes are expected to be made in China this year through third-party manufacturers, down from 80% last year. Coach will reduce its overall production in China to about 50% by 2015 from more than 80% in 2011 so the handbag maker isn’t too reliant on one country, a spokeswoman says.

Some migration of apparel manufacturing from China is expected, and even encouraged by the government, as the country’s economy matures. As other Asian nations become efficient at mass manufacturing, China must embrace research and high-technology production to transform its economy as South Korea and Japan once did. But healthy economic growth requires that China expand its service sector and create higher-skilled manufacturing jobs at a rapid clip to compensate.

“If costs continue to rise, but China is unable to become more innovative or develop home-grown technologies, then the jobs that move offshore won’t be replaced by anything,” says Andrew Polk, a Beijing-based economist for the Conference Board, a research group for big American and European companies.

China continues to be the developing world’s largest recipient of foreign direct investment, attracting $112 billion last year. But that was down 3.7% from a year earlier. And exports still are rising in the double-digit percentages. Growth is slowing.”

via China Manufacturers Survive by Moving to Asian Neighbors – WSJ.com.

01/05/2013

* China Grapples With Labor Shortage as Workers Shun Factories

The government’s plan to shift the economy from manufacturing and export to services and internal consumption may be a step in the right direction to re-balance the economy – see https://chindia-alert.org/2013/04/19/chinas-growth-the-making-of-an-economic-superpower-dr-linda-yueh/.  But only if the move doesn’t “hollow out” manufacturing and export as a result. Otherwise, China will be treading a path Western nations have trod and are still treading to one of slow growth and increasing debt.

WSJ:

Second in a Series: China’s Changing Work Force

“For 15 years, Cui Haifeng worked in China’s manufacturing industry, stitching together leather to make soccer balls before working her way up to warehouse manager at a wood-flooring factory.

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A young woman stands in the street as a hostess and advertisement for a hotpot restaurant in the shopping district Dongman in Shenzhen.

Last month the coal miner’s daughter traded a past of factory uniforms for a blouse and skirt, training as a customer-service representative for a life insurer in Guangzhou, southern China’s largest city.

The insurance industry “provides a more promising future and flexible working hours,” says Ms. Cui, 34 years old, who grew up in central China’s poor Henan province. “I want to earn more money to give my two kids a better and stable living environment.”

Her experience mirrors a transition sweeping China. This year, service-related positions—such as those in retail, travel and leisure—for the first time will account for more of the country’s gross domestic product than industrial-sector jobs, J.P. Morgan Chase JPM -1.90% predicts. Government figures show that the service sector created 37 million new jobs in the past five years, compared with 29 million in the industrial sector, which includes manufacturing, construction and mining.

Growing competition between the service and industrial sector for migrant workers like Ms. Cui is contributing to China’s tightest labor market in years, putting upward pressure on wages that already are rising in the double digits annually. That is leading apparel manufacturers to shift some production out of China, although concerns about worker safety in countries such as Bangladesh are forcing factory owners to consider the risks of doing so.

Demand for urban workers in China exceeded supply by a record amount in the first quarter, according to the government. Meanwhile, the average monthly income for migrant workers rose 12.1% from a year earlier.

“There is no let up in the labor shortage,” says Kelvin Lau, a senior economist Standard Chartered Bank. Manufacturers “are realizing that this is not a cyclical thing. It’s not about riding out a storm.”

In southern China’s industry-heavy Pearl River Delta region, nearly 90% of factory owners surveyed by Standard Chartered say the labor shortage will remain the same or get more severe this year.

Stronger growth for service-sector jobs signals that the government’s long-promised transition from an industrial economy focused on exports to one led by domestic demand is under way. Creating jobs in hair salons and insurance companies, instead of in steel mills and soccer-ball factories, helps fuel growth in the world’s second-largest economy.”

via China Grapples With Labor Shortage as Workers Shun Factories – WSJ.com.

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