Future shock

Article Abstract:

Shanghai's effort to convert to a high technology economy has serious repercussions for workers in the displaced industries. For example, once a textile center, the entry of competing centers and Shanghai's relatively high wages meant Shanghai could no longer compete profitably. Thousands of textile workers have been laid off and many outdated factories closed. The government promises retraining, but the new industries require fewer workers and workers with advanced skills and college educations. Menial labor may be all that is available to those laid off.

Employment, Unemployment, Shanghai, China

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Protection has a price

Article Abstract:

Chinese protectivist policies have resulted in factory closures and worker layoffs in the Chinese textile industry. China encouraged expansion of cloth manufacture, which resulted in inefficient factories overproducing low-quality cloth. This used up scarce raw materials thus driving up prices. This in turn eroded profitability and decreased competitiveness. A downturn in the export market also contributed to debacle. However, the shake-out could, in the end, prove to be the saving of the textile industry.

Exports, Protectionism

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Urge to merge; China pins hopes on mergers to save state firms

Article Abstract:

China's communist leadership has come to prefer mergers as the method used to reform money-losing state enterprises. The government wants to avoid eliminating the state enterprise sector through privatization and bankruptcies lest social instability results from massive unemployment. One management consultant observed that these Chinese mergers can work if prerequisite management changes are implemented and the conditions are right.

Economic aspects, Acquisitions and mergers, Economic policy

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