Is China still a right place to purchase your

demanded fastener?


Which country produces the most goods in the world? Most people would say
China. Indeed, China arose really fast in past 20 years. China was 7
th
biggest
economy back in 2000. In 2003, China took over Germanys place and became 3
rd

biggest economy. China has claimed they are the 2
nd
biggest economy since their
GDP over than Japans in 2009. (Wikipedia. 2014. Economy of China.) Pretty much
every daily goods like clothes, toys, computers and mobile phones are Product of
China or Made in China. Thats because China was an excellent place to do
productions. Back in 2000, Chinese government had its incentives and policies which
attract overseas investors to come and put money in China. Chinese government
offer undeniable tax rate and a massive amount low-pay labor to investors. These
policies allowed investors to earn a lot of benefits; meanwhile, they created many
job opportunities for Chinese citizens. It was said a classic model of win-win
situation. At least, it looked like it. The new generations of China have higher
expectations of wage and the higher living standard enforce the wage to increase
to a decent level. However, for some enterprises, this is not a good news because
production cost will become higher. (China Labour Bulletin. 2013. Wage in China)
Nevertheless, China was a new developing country which means they didnt have
enough regulations to limit and prevent environmental exploiting. Environmental
issues now have been seen by the people who live in China. Many investors took
these advantages and adopted low-cost strategies but remain environmental issues
to China. In 2014, China wants a Change.


Wipe off the label of Cheap Labor and Sweat-factory

China has bore the ungrateful label, cheap labor, and sweat factory for a while
and now government wants to shake it off. Chinese government intended to attract
overseas investors in 80s. Providing cheap and large number of labor was one of
strategies. However, China has its great economy and economical power. It attempts
to step up and make a change. Not only the government but the young generation of
China demands more. The wage increases of the last few years have been driven to
an important extent by a new generation of migrant workers which is no longer
willing to tolerate the low pay and harsh working conditions the parent generation
had to endure. (China Labour Bulletin. 2013. Wage in China)

These younger workers are often better educated than their parents, have higher
expectations and aspirations, and are much more aware of their rights as
employees. In addition, they now have the confidence, the means and the ability to
push for higher wages. Nearly all young workers have mobile internet access and
many are active on social media. This makes it possible for them to post real time
updates of their labor disputes, their demands and their actions in support of those
demands. This in turn can create publicity and put pressure on both management
and local government to resolve the dispute as quickly as possible. (China Labour
Bulletin. 2013. Wage in China)

According to Trading Economics, Chinese workers wage is increasing every year
since 2004. The average yearly wage was 16024 Yen in Jan 2004. However, the
average year wage has grown to 51474 Yen per year in Jan 2014. In the other word,
Chineses pay check grows 12.4% every year. Back in 2004, investors may be able to
take the low-cost advantages. But now, investors may need to pay more but the
efficiencies remain the same. (Trading Economics. 2013. China Average Yearly
Wages.)


China no longer has an inexhaustible supply of young workers from the
countryside willing to work endless hours on production lines for mere subsistence
wages. Labor shortages combined with a new determination and ability of workers
to organize collectively has meant that manufacturers have been forced to pay higher
wages or alternatively. But while wages for factory employees and other low
income workers have certainly increased, the rate of increase has not kept pace
with that of higher income earners, leading to greater income disparity in China.
Moreover, the higher cost of living has meant that low income earners still spend a
disproportionately high percentage of their take home pay on daily necessities
such as food, housing and transport. (China Labour Bulletin. 2013. Wage in China)

Save the environment for next generation.

When human praise how well of their industrial development, at meanwhile, the
environment suffers the erosion of pollutions. In 80s, Chinas economical policies
allow overseas investor to develop the primitive land and bring the civilization to
China. Economy of China grown really fast and became strong and healthy.
However, the environment went oppositely and became vulnerable.

China has many environmental issues, severely affecting its biophysical
environment as well as human health. The water resources of China are affected by
both severe water quantity shortages and severe water quality pollution. An
increasing population and rapid economic growth as well as lax environmental
oversight have increased water demand and pollution. China has responded by
measures such as rapidly building out the water infrastructure and increased
regulation as well as exploring a number of further technological solutions. Water
usage by its coal-fired power stations is drying-up Northern China. Desertification
remains a serious problem, consuming an area greater than that taken by farmlands.
Although desertification has been curbed in some areas, it still is expanding at a rate
of more than 67 km every year. 90% of China's desertification occurs in the west of
the country.

Various forms of pollution have increased as China has industrialized, causing
widespread environmental and health problems. In January 2013, fine airborne
particulates rose as high as 993 micrograms per cubic meter in Beijing, compared
with World Health Organization guidelines of no more than 25.Heavy industry,
dominated by state-owned enterprises, has been promoted since the beginning of
central planning and still has many special privileges such as access to cheap energy
and loans. The industry possesses considerable power to resist environmental
regulation. (Bloomberg News. 2014. China Takes On Pollution With Biggest
Changes in 25 Years.)

Since 2002, the number of complaints to the environmental authorities
increased by 30 percent every year, reaching 600,000 in 2004; meanwhile, according
to an article by the director of the Institute of Public and Environmental Affairs Ma
Jun in 2007, the number of mass protests caused by environmental issues grew by
29 percent every year since that time. Various forms of pollution have increased as
China have industrialized which has caused widespread environmental and health
problems. China has responded with increasing environmental regulations and a
build-up of pollutant treatment infrastructure which have caused improvements on
some variables. As of 2013 Beijing, which lies in a topographic bowl, has significant
industry, and heats with coal, is subject to air inversions resulting in extremely high
levels of pollution in winter months. (Wikipedia. 2014. Environmental issues in
China.)

When the new environmental protection provisions go into effect in January
2015, the government's environmental agencies will be allowed to enforce strict
penalties and seize property of illegal polluters. Companies that break the law will
be "named and shamed", with company executives subject to prison sentences of 15
days. There will be no upper limit on fines; previously, it was often cheaper for
companies to pay the meager fines provisioned by the law than install anti-pollution
measures. In all, the new law has 70 provisions, compared to the 47 of the existing
law. More than 300 different groups will be able to sue on the behalf of people
harmed by pollution.( Wikipedia. 2014. Environmental policy in China.)

Under the new law, local governments will be subject to discipline for failing to
enforce environmental laws. Regions will no longer be judged solely on their
economic progress, but instead must balance progress with environmental
protection. Additionally, local governments will be required to disclose
environmental information to the public. Individuals are encouraged to "adopt a
low-carbon and frugal lifestyle and perform environmental protection duties" such as
recycling their garbage under the law.( Wikipedia. 2014. Environmental policy in
China.)

Conclusion:

Economy of China has been developed for over 30 years and now it is second
biggest economy in the world. Economical policies in 80s created a lot of job
opportunities and allowed the industrial development. These policies brought many
economical benefits to China. China can manufacture mass products. International
buyers can purchase massive products with low price to reduce cost of sale. Due to
the fact of economical incentives, China became one of biggest exporters on the
earth. However, the trade-off of this position is Chinas ecosystem. The air, water,
land and other environmental conditions are dropped to an unbearable point and it
could endanger human health. Moreover, new generation of China expects higher
level of wage. Higher living standard also pushes the expense of labors payment
increase dramatically. Both of wage and environmental issues enforce Chinese
government make a change. Government aims to labor exploiting to establish
regulations to increase labors working conditions and wage. Current
environmental policies also regulate factories to drain out polluted water and void
air emission. The 80s benefits for international investors now are gone. In
conclusion, is China still a right place to purchase fasteners?



Reference:

1. Wikipedia. 2014. Economy of China. [ONLINE] Available
at: http://en.wikipedia.org/wiki/Economy_of_China. [Accessed 10 September 14].
2. China Labour Bulletin. 2013. Wage in China. [ONLINE] Available
at: http://www.clb.org.hk/en/content/wages-china. [Accessed 10 September 14].
3. Trading Economics. 2013. China Average Yearly Wages. [ONLINE] Available
at:http://www.tradingeconomics.com/china/wages. [Accessed 10 September 14].
4. Bloomberg News. 2014. China Takes On Pollution With Biggest Changes in 25
Years. [ONLINE] Available
at: http://www.bloomberg.com/news/2014-04-24/china-enacts-biggest-pollution-curbs-in-25-years
.html. [Accessed 10 September 14].
5. Wikipedia. 2014. Environmental policy in China. [ONLINE] Available
at:http://en.wikipedia.org/wiki/Environmental_policy_in_China. [Accessed 10 September 14].
6. Wikipedia. 2014. Environmental issues in China. [ONLINE] Available
at:http://en.wikipedia.org/wiki/Environmental_issues_in_China. [Accessed 10 September 14].