“For a long time, China was considered as a country with low labor costs and very flexible labor law, with flexible recruitment and layoff options, but it isn’t true anymore.” Hubert Bazin, in charge of the Beijing office of the DS Avocats law firm, is describing these changes to the Chinese labor market for us. (Ref. 130659)
- What changes do you observe on the Chinese labor market as part of your activity in Beijing?
Hubert Bazin. For a long time, China was considered as a country with low labor costs and very flexible labor law, with flexible recruitment and layoff options, but it isn’t true anymore. A new context is taking shape, a result of the new Chinese economic model. It should redirect Chinese growth factors, so that growth doesn’t depend on exports and investments so much but more on domestic consumption.
Because of this, the authorities are supporting domestic consumption by increasing pay. Thus, for instance, the current 5-year plan (2011-15) provides for a minimum wage increase in all towns of providence of at least 11 percent annually.
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