Crisis in China
“Crisis in China” by John Clegg, discusses the past crisis, present crisis and the possible future crisis of China. Over the past 20 years, China has been significantly industrializing. China was the “go to” spot for many capitalists looking to increase their profits. And because of that, it brought millions of migrant workers from the countryside into the cities where they would find work in factories. Many of the workers even saw themselves staying in the cities for the rest of their lives and therefore, they sold parts of the farm land.
Although China has been industrializing for the past 20+ years, many workers have complained about the conditions and wages of working in factories. This was the crisis for the past 20 years. Many workers weren’t satisfied and had enough of the harsh treatment. This forced many to strike and create movements to better the conditions of the factory life. Clegg states,
“after the beginning of the industrialization thrust, the number of struggles of migrant workers increased steadily, struggles against the horrendous working conditions, for improvements and higher wages, for their share of the fruits of the boom.”
While laborers were struggling, capitalists were making huge profits. And surprisingly, the Chinese government didn’t really care either because they were prospering too. Allowing external capitalists to run factories with cheap labor costs attracted even more capitalists to do the same. China was practically a market for capitalists to increase their profits. In addition, it was becoming one of the biggest exporters in the world.
“A labor activist said that the government wants factories to survive and stay, and that is why they ignore the problems at the workplaces.”
If the Chinese government begins to enforce the labor laws, many factories will have to be closed down. Besides the poor laborers, China saw this time of industrialization as a time of growth. That’s why they didn’t really bother with workers’ concerns.
Anyhow, the labor conditions and struggles was the crisis for the past 20 years. Now the crisis is something else and some are afraid that it might be even worse. In the fall of 2008, China believed that the recession wouldn’t hit them because they were such a big market for production. Unfortunately it hit China hard. Now they’re even in bigger crisis.
“In mid-January 2009 the Ministry of Labor announced that 10 million migrant workers had lost their jobs, in early February the number was raised to 20 million.”
Before, the working class was complaining about the conditions of working. Now, they don’t even have anything to complain about, except for the fact that they have no job. Soon or later, the workers are going to realize that the industrial boom is over and they will realize that their lives will change dramatically. Clegg believes there will be 2 scenarios:
a) The second generation of migrant workers does not want to live in the countryside anymore, or at least does not see its future there. So they could stay in the cities and, if unemployed, would have to search for alternatives for getting an income, accommodation and food, and possibly fight for and appropriate it. In many big cities they account for 30 to 80 percent of the population. Is there a chance for them to join forces with millions of urban poor who survive on petty trade and petty jobs?
b) The migrant workers could migrate back to their families in the villages where they still have the right to farm a piece of land. Maybe they will manage to get by with the money they saved, but without an urban wage the families will sooner or later run into financial problems. There are no jobs, no perspective, poverty and boredom.29 In the past few years the countryside has seen many revolts against corrupt cadres, land dispossessions and environmental contamination. Even now in many regions the small plots are not big enough to feed a whole family, and there is still a rural labor surplus. The planned state subsidies for education, school fees and the setting up of businesses will not change much. If the migrant workers return to the countryside in masses – a temporary reversal of 30 years of urbanization – that would create an explosive mix.
In addition, some are even afraid of a bigger crisis. China is well known for social problems between the working class and the wealthy class. China has a history of working class citizens and peasants who try to revolt to overthrow the government. This is what Clegg and many analysts are really afraid of if the working class of China does not find any employment.
