With the new labor law published on 1st, Jan, 2008, the scenario about the labor cost situation in China is getting more and more serious. China, a world-known factory, realizes that the value of knowledge and technique are more important than just providing low entry labor market. This indicates that to come to Chinese market with hopes of avoiding high human resources cost as in EU and America, is becoming more difficult and unreasonable.

With the new laws being published, in a short time, the knowledge and awareness of employees to be protected and to fight for legal rights has increased drastically. Our interactions with customers tell us that there has been a rise in such cases since 2008. On the other hand, the situation has been aggravated by the perception of the government and judges in China pertaining to the position of labourers who are deemed to be weaker as compared to enterprises. The investors position is being compromised.

To leave or to stay, what shall we do?

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