Friday, June 25, 2010

So what is happening inside China? Suddenly there is a rash of strikes by workers at foreign factories such as Honda and Toyota. Before that there were suicides at Foxconn which is a Taiwanese company supplying to computer giants such as Apple. Foxconn increased salaries by 30% and then again by 70%. If they are able to double salaries of workers and still hope to make a profit it shows how the workers were being brutally exploited before nine people committed suicide. This is the country where the communist party is in total control and where you would expect a paradise for the proletariat. Exactly the opposite is true. No one has any rights and strikes are usually banned. When children died of melamine mixed in milk protesting parents were beaten up and threatened into silence. When children die of water poisoned by manufacturing companies no one is allowed to cmplain. So why he strikes in foreign owned factories? Are the strikes being organised by the party only against the Japanese? Or has China decided to make it so difficult for foreign owned companies that they sell out to local competitors and move out? This will allow Chinese manufacturers to take over ready made plants along with the knowhow to move up the value chain. Instead of exporting low cost rubbish they will be able to manufacture high end products for export what Lenovo has been able to do after buying out IBM's personal computers division. Saving face is very important to the Chinese because they know that they are a brutal uncivilised people. They want to become the most powerful nation on earth. God help everyone if they succeed.

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