Impact of Chinese Multinationals on Global Labor Conditions and European Strategies

Nathalie Homlong () and Elisabeth Springler ()
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Nathalie Homlong: Volda University College
Elisabeth Springler: University of Applied Sciences BFI Vienna

A chapter in Emerging Market Multinationals and Europe, 2019, pp 179-193 from Springer

Abstract: Abstract Labor-intensive production has been the main driving force for China’s economic development in recent years. At the same time, labor conditions in Chinese factories were closely watched as an increasing number of violations were reported. Areas of violation include long working hours, unpaid or poorly paid labor, and child labor. These problems also led to an increasing number of strikes and a high number of suicides (see among others Chan and Pun Asia Pac J 8 (37): 2–10, 2010; China Labor Watch, The other side of fairy tales—an investigation of labor conditions at five Chinese toy factories, 2015). While foreign direct investment (FDI) from industrialized economies previously encouraged the development of China’s economy, China has invested strongly in other economies in recent years. It must therefore be asked whether Chinese FDI has also led to an “export” of bad labor conditions. Potential effects for Europe are in the center of the discussion as European economies are seeking FDI inflows since the global financial slump of 2008/2009. Based on the theoretical distinction between varieties of capitalism, which are applied to emerging economies in this paper, and the characteristics of Chinese multinational enterprises, the role of the state and the characteristics of the institutional setting, e.g. Chinese wage bargaining structure, are explained. Furthermore, experiences from former expansionary phases of Chinese enterprises are compared with the situation in Europe.

Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-31291-6_11

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DOI: 10.1007/978-3-030-31291-6_11

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