Posts tagged ‘local governments’

07/08/2014

After China Factory Explosion, Workers Petition for More Rights – China Real Time Report – WSJ

A deadly fire at a garment factory in New York City more than a century ago set the stage for widespread support a for labor movement in the U.S. that led to sweeping reforms of workplace-safety laws.

Now, some activists are hoping that a recent blast in eastern China that killed at least 75 workers and left 180 other injured can do the same here. Chinese labor-right activists are putting together a petition for the country’s legislators, which they say they hope might help to reshape the labor-rights landscape of the world’s largest manufacturing center.

The letter, circulating on Chinese social media, calls on unions to give workers the right to inspect work-safety conditions and to carry out collective bargaining with employers regarding labor-safety standards. It also calls for local governments to step up their supervision of work safety and for employers to respect workers’ rights.

The 1911 Triangle Shirtwaist fire, which claimed the lives of 146 mostly female immigrant garment workers in New York—a garment-manufacturing hub at the time— inspired the U.S. workers to defend their rights. After decades of suffering, Chinese workers’ rights are still neglected, said the letter, signed by 15 labor-rights institutions and nearly 1,600 workers as of Thursday morning.

“China does have work-safety laws, but local governments don’t implement them strictly so some companies don’t take the codes seriously,” Beijing-based labor-rights researcher Wang Jiangsong said.

Mr. Wang, a professor at the China Institute of Industrial Relations, has been promoting the petition on his personal Weibo account.

“Under the current system, workers have no means to voice their concerns. That’s the root problem.” Mr. Wang said by phone.

China’s unions are controlled by the government, and recent efforts by workers to establish independent worker unions have been foiled by local governments, workers and activists have said.

An official investigation showed the most recent incident, which happened at a company that supplies parts for cars from General Motors Co. and other auto makers in Kunshan, Jiangsu province, was caused by an excess of dust that exploded after exposure to a heat.

The town’s local fire department said there was a fire alert from the factory two months before the explosion, which they said the workers extinguished before the fire engine arrived, the Beijing News reported on Monday.

Xinhua News Agency on Monday cited China’s official work-safety agency as saying inadequate supervision by local authorities was partly responsible for the blast.

The local government in Suzhou, which governs Kunshan, has suspended operations at 214 factories to evaluate safety risks, Xinhua said on Wednesday.

The explosion in Kunshan, which caught nationwide attention, is the most deadly among a series of similar accidents in China in recent years.

In April, a blast also caused by excessive dusk levels in the neighboring city of Nantong, led to eight deaths. Two years ago, aluminum dust caused a blast at a factory in the export hub of Wenzhou, in Zhejiang province, claiming 13 workers’ lives and injuring 15, Xinhua reported.

“Excess levels of dusk is very common in Zhejiang, and it’s very dangerous for workers,” said Huang Caigen, founder of Zhejiang-based nonprofit Xiaoxiaoyu Labour Services, which provides work-safety training and legal assistance.

Mr. Huang said inspectors from local governments normally have close relationships with their town’s employers, meaning factories can often easily pass local work-safety inspections via their “public relations” efforts.

Although Mr. Huang admits that the most recent petition might bring about immediate change, he remains optimistic that persistence will eventually pay off.

“Maybe this time won’t result in anything, but if we keep on trying… I think we could make some difference.”

via After China Factory Explosion, Workers Petition for More Rights – China Real Time Report – WSJ.

30/06/2014

China supreme court appoints top environmental judge | Reuters

China’s supreme court has appointed a senior judge to handle environmental cases as the environmentally challenged country bids to get tough on polluters and improve the way its laws are enforced, an official newspaper said on Monday.

China Environmental News, published by the Ministry of Environmental Protection, said Deng Xuelin had been appointed as the presiding judge of the Environmental and Resources Tribunal of the Supreme People’s Court.

The tribunal was formally established just two weeks ago.

Beijing, hit by a series of pollution scares and scandals, has vowed to reverse some of the damage done by three decades of untrammeled economic growth, but it has traditionally struggled to impose its will on big industrial enterprises and the local governments that protect them.

The report said the new state tribunal would give “unified guidance and coordination” to the 134 specialist environmental courts that have been set up by local governments, noting that the procedures used to handle such cases was “very informal”.

Litigators have long complained that lawsuits launched against polluters have been routinely rejected or even ignored by local courts, many of which lack the capacity and the independence to take on powerful government-backed firms.

China has promised to create legal channels allowing members of the public to take action against firms that break the law, but environmental officials say they lack resources and are already overwhelmed by the number of cases.

 

Earlier this year, China passed amendments to its 1989 Environmental Protection Law, giving local governments greater powers to fine, shut down and even imprison violators.

via China supreme court appoints top environmental judge | Reuters.

21/02/2014

* Local-government debt: Bridging the fiscal chasm | The Economist

This article provides support for the views of Charlene Chu, expert on China’s shadow debt – http://www.ft.com/cms/s/0/ffcabcec-7900-11e3-b381-00144feabdc0.html#axzz2tsNdwlvq.  She was one of the key interviewees in Robert Peston‘s recent BBC2 show on “How China Fooled the World”. – http://www.bbc.co.uk/programmes/b03w7gxt

“CHINA’S provincial administrations are often referred to as “local” governments. But the phrase does not do them justice. The province of Guangdong, for example, boasts more than 105m people and a GDP worth more than $1 trillion. Only 11 countries (including China itself) have a bigger population and only 15 have a larger economy.

Equally impressive is the scale of provincial debts. At the end of 2013 China’s national auditor revealed that the liabilities of local governments had grown to 10.9 trillion yuan ($1.8 trillion) by the middle of last year, or 17.9 trillion yuan if various debt guarantees were added. That was equivalent to about a third of China’s GDP. These “local” debts, in other words, had grown fast enough to become a national burden and an international concern.

The audit documented the size of the problem, but revealed little about its location. The debts were all discussed at an aggregate, countrywide level. No provinces were singled out for blame or praise. In the past few weeks, however, almost all of the provincial-level governments have published audits of their own. As well as shedding light on the problem, this information may help to solve it. In principle, the least provident governments are now exposed to public scrutiny. Fiscal shame may help prevent a fiscal fright.

But identifying the most indebted province is not as easy as it sounds. The figures can be sliced and diced in a variety of ways. The coastal provinces of Jiangsu (just north of Shanghai) and Guangdong (just north of Hong Kong) owe the most, accounting for 14% of the total between them. But these two provinces also have the largest economies, generating over 19% of the country’s GDP.

Relative to the size of their economies, the poor western provinces of Yunnan, Qinghai and Gansu bear some of the heaviest burdens, along with the western municipality of Chongqing, which is renowned for its heavy public investment (see chart). The province with the biggest fiscal chasm to cross, however, is Guizhou (whose impressive Balinghe bridge is pictured above). It had liabilities in mid-2013 equivalent to over 80% of its GDP over the previous four quarters.

These figures include money China’s provincial governments have borrowed themselves and other institutions’ debts that they have guaranteed. Sometimes this debt is guaranteed explicitly. Often, the backing is implicit. By the end of 2012 Chongqing had explicitly guaranteed debts worth 18% of its GDP. Gansu, for its part, had implicitly backed borrowings worth 20%.”

via Local-government debt: Bridging the fiscal chasm | The Economist.

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10/12/2013

China to judge local governments by their debt: Xinhua | Reuters

China will soon rate the performance of local governments partly by how much debt they incur, as Beijing tries to wean the country off heavy government investment, state media said.

A farmer carries a shovel over his shoulder as he walks to tend his crops in a field that includes an abandoned building, that was to be part of an amusement park called 'Wonderland', on the outskirts of Beijing December 5, 2011. REUTERS/David Gray

The central organization department, which oversees the appointment of senior party, government, military and state firm officials, said debt will be key when evaluating performances, according to the state news agency Xinhua.

Large-scale government investment has helped China\’s gross domestic product expand at double-digit rates for the past three decades. But analysts say China\’s economy has now hit a turning point, and domestic consumption must grow and investment fall to ensure a healthy expansion.

via China to judge local governments by their debt: Xinhua | Reuters.

21/11/2013

Is Land Reform Finally Coming to China? – Businessweek

China’s leaders raised a multitude of reforms as priorities at the plenum that closed a week ago. A key one, a change in land ownership so that farmers can more freely rent, sell, and mortgage their land, is hoped to boost China’s still laggard household consumption.

A farmer harvesting rice in Xizhou county, China

“The Party leadership has given its blessing to land reforms that should shift more income to rural households. Change will happen slowly but the result should be a boost to consumer spending,” wrote Mark Williams and Julian Evans-Pritchard, economists at London-based Capital Economics in a Nov. 20 note.

The present system dates back to the early days of the People’s Republic and classifies all rural land as collectively owned. That murky status restricts farmers from selling the land they live on, while local governments are largely free to take it—sometimes forcibly—and convert it to industrial and commercial uses, providing a key source of their income.

Authorities usually sell the seized land for 18 times what they paid the farmers, estimates Li Ping, senior attorney at the Beijing office of Landesa, a Seattle-based nonprofit that focuses on land-rights issues. This contributes to rising social instability, with farmers protesting land grabs, and it keeps the rural population poor, Bloomberg Businessweek reported earlier this year.

It can’t all be labeled rapacious land-grabbing, however. With local governments responsible for 80 percent of spending, including for their citizens’ education, health, and pensions—but getting only about 40 percent of China’s total tax revenues, according to World Bank estimates—the reliance on alternate sources of revenues such as land sales is understandable. According to China’s Ministry of Finance, local governments’ land-sale proceeds totaled 2.67 trillion yuan ($438 billion) last year, equivalent to more than half their total tax revenue, Bloomberg News reported on Sept. 24.

“With farmers and collectives now barred from selling rural land, expropriation of land has been a significant source of revenue for local governments,” wrote the Capital Economics economists. “They rezone it for commercial, industrial or residential use, add some infrastructure and sell it on. Industrial firms are often offered land at a low price as an incentive to set up in an area. Local governments benefit by taxing these firms’ activities.”

via Is Land Reform Finally Coming to China? – Businessweek.

14/05/2013

* An addiction that could spell economic disaster

The Times: “Fund managers who between them control more than $1 trillion in assets were warned yesterday that China was in the grip of a debt addiction that could destabilise its financial system.

Traditional houses in the shadow of new high-rise apartment blocks in Shanghai

Speaking at the annual CLSA China Forum in Beijing, Francis Cheung, the brokerage’s China head, said that the country was hooked on an “unsustainable” pace of growth requiring ever-greater injections of debt to keep going.

Fifty per cent of the Chinese econ-omy is made up of investment, an unprecedented level for a country at its stage of development, sucking in increasing amounts of credit, effectively to buy growth.

Total debt in the world’s second-largest economy soared from 148 per cent of gross domestic product in 2008 to 205 per cent of GDP last year and is expected to hit 245 per cent by 2015, Mr Cheung said in a report.

But despite the rising tide of investment being poured in to build everything from houses and roads to railways and power plants, China’s credit habit is becoming less effective, with the same amount of debt generating lower returns every year.

China’s annual GDP growth has almost halved from 13 per cent in 2007 to an expected 7.5 per cent this year, while total debt has more than doubled in the same time, a development model that President Xi Jinping also has called “unsustainable”.

“China is running just to stand still … China is not a rich country; it is a lot of debt for a country at this GDP level. What I worry about is unregulated lending,” Mr Cheung told the forum.

With Chinese industry suffering from overcapacity in every sector from steel to cement to solar panels, the country “cannot use any more stimulus policies to boost growth”.

The fastest-growing debt is that shouldered by local governments, with the undisclosed sum estimated to have hit 20 trillion yuan (£2 trillion) last year — a doubling in two years. Local governments are being forced to pay more to service their debts, while their ability to raise money through selling land is slowing.

The biggest risk, Mr Cheung said, came from the growing use of unregulated loans generated by “trust companies”, financial sector intermediaries that make money from offering risky loans known as “wealth management products” to private companies unable to get credit from state-run banks.

A report published by Moody’s yesterday found that China’s “shadow banking” sector had hit an estimated 29 trillion yuan (£3 trillion) last year, posing a “systemic risk” to the financial system, despite a partial clampdown in March. The credit ratings agency also warned of the threat of contagion, stemming from little-regulated shadow lending that has swollen by 67 per cent in the past two years.

Last month China sudffered its first sovereign credit rating downgrade in 14 years as Fitch lowered its appraisal amid fears that its debt problems would necessitate a government bailout.”

via An addiction that could spell economic disaster | The Times.

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