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Study Times: Increasing People’s Wealth Leads To a Strong Nation

The CCP Central Party School’s newspaper, Study Times, recently published an article discussing the importance of increasing the Chinese people’s wealth. The key point is that compared to the growth of China’s national wealth, the growth of average people’s income has lagged far behind. According to a study of the period from 1995 to 2007, China’s fiscal income increased by 5.7 times, and the average yearly increase was 16%. In contrast, the average annual increase of city residents’ disposable income was 8%, and the average annual increase of rural residents’ disposable income was 6.2%. Consequently, many people are asking, “How can we spend more money when we don’t have any money?"

The article’s author argued that the ultimate goal of a country’s economic and social development is to let its people have a prosperous life. A “wealthy nation full of poor people” can never sustain a society’s healthy growth.

Source: Study Times, May 25, 2009.
http://www.studytimes.com.cn/WebPage/ny1.aspx?act=1&id=2672&nid=9696&bid=12&page=1

Applications for College Entrance Exam Down

Other than Guangdong, Jiangsu, and Chong Qing, most provinces will see a decrease in college entrance examination applications this year. The main reason is the tough job market college graduates face.

Some high school graduates apply for vocational schools to learn a trade. And more and more of them are applying to colleges overseas.  For example, there are 3000 high school students who take the SAT test each year to apply to colleges in the US.

Source: Huan Qiu, May 28, 2009
http://china.huanqiu.com/roll/2009-05/473516.html

Young Party Leaders at High Risk for Corruption

Young party leaders under the age of 45 make up a larger portion of those accused of corruption charges. According to Guangzhou Discipline Inspection Committee, among 227 government employees who were charged with corruption from 2007 and 2008, 127 of those were between 31 and 45, accounting for 55.95 percent of the total.

Source: China News, May 18, 2009
http://www.chinanews.com.cn/gn/news/2009/05-18/1695619.shtml

Online Survey Results on Geithner’s Visit

Huanqiu published its online survey results on US Treasury Secretary Geithner’s fist visit to China: 83 percent believe that the purpose of Geithner’s China visit was to ask China to buy more US debt; 49 percent feel that China will not purchase more debt; 63.3 percent believe the US relies on China.

Huanqiu also listed the following five requests made to Geithner from its online users. They are: keep US currency stable and stop pressing China on the currency issue; lift the sanction on exporting high-tech to China; ensure safe investment in the US; recognize China’s (world) market economy status; and cancel US trade protection clause against China.

Source: Huan Qiu, May 31, 2009
http://china.huanqiu.com/roll/2009-05/475121.html

Chinese Protesters Warmly Welcome Nancy Pelosi

When Nancy Pelosi, the speaker of the U.S. House of Representatives and a vocal critic of China’s human rights record, started her China visit on May 24, 2009, she received a warm welcome from Chinese petitioners who are fed up with the government’s corruption. The petitioners, staged protests against the Chinese government almost daily. When Pelosi arrived, they showed their appreciation for her promotion of human rights in China. The largest demonstration occurred on May 25, when several thousand petitioners gathered at Beijing’s South Train Station for the Speaker’s arrival. They shouted slogans to protest government corruption, its denial of human rights and democracy, and its ignoring justice in its courts. One banner said “Welcome Pelosi. Pay Attention to China’s Human Rights! SOS.” The police and hired underground gangsters clashed with the protesters. The demonstration lasted for two hours during which the police took some protesters away.

The demonstration can been seen on YouTube:
http://www.youtube.com/watch?v=usADrSCMQKE&feature=channel

Source:
[1] Voice of America, May 25, 2009
http://www.voanews.com/chinese/w2009-05-25-voa47.cfm
[2] Radio Free Asia, May 25, 2009
http://www.rfa.org/mandarin/yataibaodao/pelosi-05252009094129.html
[3] Epoch Times, May 25, 2009
http://www.epochtimes.com/gb/9/5/25/n2537583.htm

Epoch Times: China’s Report of GDP Growth Is Questionable

Epoch Times expressed that the report that China released on 2009 first quarter GDP was not convincing and the Economist pointed out that the figures had likely been fudged. The government released GDP and production numbers for the first quarter of 2009 declaring 6.1% and 16% increases respectively over the same period in 2008. However, the electricity production in the first quarter was 4% down from the same period a year earlier. In the past, GDP and electricity output have moved broadly together, although it is not a one-to-one relationship.

Economists have long questioned whether China has been massaging its GDP data. It is widely believed that China’s GDP growth was overstated during the period after the Tiananmen Square Massacre and the Asia Crisis period.

Source:
[1] Epoch Times, May 25, 2009
http://www.epochtimes.com/gb/9/5/25/n2537054.htm
[2] Economist, May 21, 2009
http://www.economist.com/finance/displaystory.cfm?story_id=13692907

Financial Crisis Leaves Dongguan with Nothing (Part III)

The Xiao Xia Who Does Not Want to Go Home

“Here you see people and cars everyday; at home you can only see pigs and ox-wagons. Would you go home if you were me?”

– By reporter Wang Daqi and intern reporter Li Shaoqing, from Dongguan

At Dongguan Industrial Park, there was a giant red board in front of a toy factory announcing jobs.  A group of migrant workers were talking next to the board, yet no one dared to go inside. Xiao Xia was one of them. He was looking at the board, “Room and board covered, monthly salary 800 yuan.”

“Is it a trap?” Xiao Xia talked to the reporters, thinking they were also unemployed workers like him. “I look too young. I am afraid that they will not hire me. Why don’t you go in first, you could say that the three of us are together. That way it will be easier (for me to be hired).”

Xiao Xia, a sixteen year old boy with his hair dyed yellow, left his hometown in Henan Province and came to Dongguan more than two years ago. He worked at a radio factory before. “(The job was easy.) All you needed to do was to stick all the parts on to a circuit board.” Xiao Xia said the work was a bit boring, but he got paid more than 1000 yuan a month. “We were paid for each piece completed, as long as we finished our quota each day, that’s it.  If I worked more, I would get overtime pay, 5 yuan for each hour.”  Xiao Xia was good at the work. He could often finish his quota ahead of time and then go back to sleep.

Last January, the boss told Xiao Xia and his friends that he had to deduct one month worth of their wages because they “did not obey the management and were involved in fighting.”  Xiao Xia told the reporters, “As a matter of fact, the boss was running out of money, so he looked for excuses not to pay us. We fought before but the boss never cared. We did not sign any contract with the factory and we are responsible for our own fighting. Why should the boss deduct money from our wages?”

Xiao Xia and his friends went on strike for a week.  Finally the boss agreed to pay their wages, but the condition was that they had to leave.  Xiao Xia and three other people left the factory, one of them went back to his hometown in Henan Province. Xiao Xia and the other two are still at Dongguan looking for jobs.

When Xiao Xia and the reporters went inside the toy factory the manager and director were both there.  They told the reporters and Xiao Xia, “Our boarding rooms are full now, so we stopped hiring temporarily. You can fill out a form and we will contact you when we start hiring again.”

Walking out of the toy factory, Xiao Xia was calm. He told the reporters that he has been looking for more than a month and filled out more than a dozen forms like this. Many places only look for skilled workers, some only look for women, there is no demand for unskilled general labor.

This is very common in Dongguan.  Under the global financial crisis, all factories are looking for ways to cut costs. Female workers eat less and are more careful at work. They are also easier to manage than male laborers.

Xiao Xia said he had used an employment broker before. They “guaranteed to find a job.” After paying 100 yuan to the broker, Xiao Xia was sent to a factory as a janitor where he had to pay another 50 yuan before starting work at the factory.  Several days later, the factory asked Xiao Xia to show them his contract. Then, they tore the contract into pieces in front of Xiao Xia and fired him blaming he “did not work hard.” Xiao Xia said he did not trust any employment brokers any more.

Yet Xiao Xia is quite confident. “I changed several jobs before, but back then everyone was hiring. I believe the companies still need labor. I will keep looking. The worst case is do temporary work.” Xiao Xia said he likes to do temporary work, as you get paid every day, and you are free to leave at anytime.

Xiao Xia brought the reporters to the factory that just fired him, “they are still hiring.”

Xiao Xia hid away watching the reporters walk through the low ceiling aisle by smelly, dirty water and going up three stories of stairs full of mold. We heard the machines and saw a big warehouse full of young workers busy sewing. No one looked at us.

The wife of the boss came over with a baby on her back and looked at us suspiciously. She told us the job offer: monthly wages of 900 yuan but no boarding. We found an excuse and left.

Xiao Xia has an older brother at Houjie, Dongguan working as a driver. He will not lose his job since he has the skill of driving. However, Xiao Xia does not want to live with his brother, because his brother tried to discipline him. “Last year I fought with people from the next door factory, when my brother found out about it, he took away the knife that I bought for more than 20 yuan. I had a big argument with him and never went back.”

Local residents said there are many young people wandering around the streets lately. Many people do not dare to go outside at night now, as people are worried that the town is no longer safe.

When talking about his future, Xiao Xia said he would stay in Dongguan by working temporary jobs. To him, it is not just the matter of making money; he cannot stand living in the countryside, as compared with life in the city.

“Here you see people and cars everyday; at home you can only see pigs and ox-wagons. Would you go home if you were me?”

Endnote:
[1] “The Xiao Xia Who Does Not Want to Go Home,” Nanfang People Weekly, April 13, 2009

http://www.nanfangdaily.com.cn/rwzk/20090413/gj/200904240009.asp

Financial Crisis Leaves Dongguan with Nothing (Part II)

We Want to Work

Half a year ago, Guo Xiaoming and his two friends were coworkers at a Taiwan-joint-venture factory. With the closure of the factory, their fates also changed.

– By reporter Liu Zichao from Dongguan

“Left with Nothing Overnight”

Holding his bike, Guo Xiaoming stands outside the gate of the Tianhua Furniture Factory with sweaty under arms. Here is Humen Town, Dongguan. Under the scorching sun, the green factory building seems spacious but lonely. Many times, when he passed here at dusk, he kept noticing the palm trees close by the gate already withered and cobwebs collecting dust.

“I had worked here for eleven years.” He told the gate guard. Then he lit a cigarette as if he was waiting for the arrival of tomorrow.

Now, Guo Xiaoming, 37, is working in the Xingyi Glass Factory as a quality inspector. His salary is less than half of his previous job. He started working in the Tianhua Furniture Factory in 1997. Before the factory was closed, he was a supervisor at the packaging group, earning more than 3,000 yuan every month.

Guo Xiaoming recalled, last October, when the surrounding shoe factories and electronics factories were closed, the workers at Tianhua felt lucky that their products were for the U.S. Although there were some changes for this big 20-year-old Taiwanese factory, nobody believed that it would collapse suddenly.

One Sunday afternoon, the news of the factory owner’s departure started spreading among more than six hundred workers. When Guo Xiaoming rushed to the factory, he saw the angry suppliers were just about to take away the machines as compensation for the debt. "It came so abruptly, we did not believe it was true." Guo said.

Finally, the Ludong Village Committee in Humen Town took over the Tianhua Factory and paid off workers’ wages. That afternoon, in the factory field, a long row of tables was laid out. The workers lined up by their departments to receive their last salaries. The loud speakers kept telling workers who received their salaries to leave the factory.

The young workers left after receiving the money. But Guo Xiaoming felt sad. At a small restaurant outside the factory, over a dozen veteran workers who had worked there for more than ten years sat down in silence. They looked like fearful youth who did not know where to go.

"After all I had worked here for so many years," Guo Xiaoming said, “It seems that nothing is left overnight.”

Like Guo Xiaoming, Zhou Rongqin began working in Tianhua in the 90’s. He tried to stay in Dongguan but all the jobs he found only paid a few hundred yuan per month which was not enough to support the family. What he worried about the most was his son, who was in his third year (last year) of middle school.

 “I want him to continue with school so that he will not end up like me.” Zhou said, “But that requires a lot of money.”

Zhou Rongqin had to go back to his hometown, Qinzhou City, Guangxi Province. He works on temporary jobs to make a living. His wife was a worker in Tianhua as well. Now she becomes a housewife without any income.

“I have worked so many years. According to the law, one year of work experience would be compensated with a month of salary. I suppose that I could get seventy to eighty thousand yuan severance pay.” Zhou talked to us over the phone from Guangxi, “we have sued Tianhua Factory. But the village committee had taken out over one million from their pocket to pay the workers. Nobody knows how much we can get from the auction of the factory’s property.”

Another worker, Xiao Pingliang, had worked in Tianhua for 18 years. He started to feel the fear of not being connected to the world for so long. Now, the life he used to live became something far away in his memory.

“I worked in the furniture factory for over ten years, almost twenty years. I had almost never left Dongguan during that time,” Xiao Pingliang said, “Now, I am almost 40 and have to leave here. I feel incompetent.”

Life without a Job

In the days without work, Guo Xiaoming would buy a newspaper and sit in the residential square. After reading the newspaper, he went to the factory and circled around there. Sometimes, he would stare at the seal at the factory gate for a long time.

One day, when he was watching international news on TV, he saw a room with furniture just like Tianhua’s products. He jumped excitedly to call his wife to come and see. But then his heart suddenly sunk with the painful realization that Tianhua no longer existed.

For Guo Xiaoming, over ten years of life working in the factory was just like a dream. When he woke up from that long dream, he still faced the pressure of making a living. He likes to recall his life as a young man.

At that time, he and his friends processed fast-food chopsticks for three to four years in Guilin City, Guangxi Zhuang Autonomous Region. The raw chopsticks were shipped from Daxing’anling, Heilongjiang Province, one container after another. They processed them and sold them to local restaurants.

Every day at dusk, he rode his tricycle through many streets in Guiling City. Sometimes when he slept late at night, he would be woken up by phone calls the next morning, urging him to deliver the chopsticks. Though life was hard he didn’t really feel much hardship.

He liked to roller skate. One day, at the ice rink he met a girl who worked in an ice-cream parlor. From then on, hand in hand, their mellow lives flew by. That girl became his wife.

In 1997, since Guo Xiaoming didn’t have the temporary residence permit to live in Shenzhen City, Guangdong Province, he had to hide to avoid being caught by the police. The inspector always showed up at late night. When he heard noise, he had to jump out the window. Once when he hid in the bushes by the river, he fell asleep and fell into the river, almost getting himself killed.

His wife felt sorry for him, “Let’s not to live a life in hiding like this anymore. All right?”

Now, these low feelings were vanishing. Without a job, Guo Xiaoming felt the pressure of surviving. When a fellow from his hometown who also lost his job invited him to join a casino business in Shunde City, Guangdong Province, he decided to take the risk.

Guo secretly took out twenty thousand yuan that he saved over years and joined the business. They rented a room at a top-class hotel and provided room and meal for their customers coming for gambling. In return, they collected a portion from the customers’ gambling money. Guo said that their most profitable night was an income of 120,000 yuan. However, they had to spend more than half of their money on the gangsters and police to stay in business.

The two months he spent on this business felt longer than two years. Guo Xiaoming learned how to gamble and run a loan shark business. He slept through the day but woke up horrified by the dream of being caught by the police. He called home a few times but he had a bad temper and shouted at his wife. After he hung up, he blamed himself deeply.

Finally he took his investment and left. After the Chinese New Year, when he was walking in the snow in his hometown in Hunan Province, he decided to come back to Dongguan. “I want to find a normal job as long as it is enough to make a living.” He said, “(I have been here for) eleven years, this is the place I am most familiar with.”

Drifting, Drifting

For the unemployed workers who worked outside their hometown all year round, the hometown is not as warm as it used to be. With the urbanization of their homeland, much of the farmland was lost – this is one of the reasons why Xiao Pingliang decided to continue drifting outside his hometown.

Xiao has been living at the Tianhua factory for more than ten years. He worked all days but one every month and rarely leaves the Road East community in Humen Town. Xiao Pingliang is very accustomed to the world here, but overnight, he found that his position disappeared in the city where he had lived for more than a decade. The financial crisis in a far far away world suddenly threw him out of his track. It is not easy to find another job nearby; it feels like a pebble in his shoe, every step brings pain.

“I don’t dare to work for a small company; I am worried that the company will also go bankrupt,” said Xiao Pingliang. “There is no job security in a small company, it could go belly up tomorrow and no one cares about you.”

In this financial turmoil, the "world factory" was deeply hurt. Many large plants closed overnight, the remaining ones are struggling to survive by cutting staff and costs. According to the statistics released on March 3 by Guangdong Provincial Department of Labor and Social Security, there were 9.46 million migrant workers who came to Guangdong Province after the Chinese New Year, of which 460,000 are unemployed.

"I visited Dongguan job market also," said Xiao Pingliang, "but jobs offered there are mostly for white-collar workers."

"I still would like to work for a furniture factory. I have 10 years of work experience, I feel competent working in this field." However, it is a difficult time for the furniture industry in Dongguan. At Houjie Township of Dongguan city, the so-called "furniture capital of the East," a survey conducted by the local Department of Labor shows that the furniture industry is running only at 60% of its capacity. After failing to find a good job, many people lowered their expectations. Having lost hope of finding a job in Dongguan, Xiao Pingliang went to Guangzhou City, Guangdong Province where his brother is residing.

Guo Xiaoming stayed in Humen. He saw the job announcement of fifteen positions by Xingyi glass factory. By the time Guo Xiaoming got there, there were more than one hundred people already waiting for interview. They filled a large gymnasium. The first step of the interview was to check everyone’s ID, then an exam of general knowledge (including writing the names of the authors of four famous Chinese novels). After that, everyone had to do push-ups – the glass factory jobs involve heavy labor.

Guo fell on the floor at his 26th push-up. The HR person said, “You are older than most others and have a family, I will count four more for you as a present.”

Guo Xiaoming said he always wanted to find a chance to thank that person and show his gratitude. Compared with his coworkers who are still unemployed, Guo said he felt lucky.

“This is a hopeless situation. So many big banks in America went bankrupt. When the big river dried up, little streams would dry up too.” Guo Xiaoming said, “Once I saw on TV that many American people could not afford a lot of things that they used to buy during Christmas time. Comparing their situation and mine, I felt a bit of comfort, yet it still seems not so comfortable.”

Today, Guo Xiaoming is doing everything he can to cut costs. He moved from an apartment that costs 240 yuan per month to one that only cost 180 yuan. He had bought a pair of “Anta” brand sneakers before but he would not buy them anymore. He spends his evening time at community square watching elderly people singing and dancing as entertainment.

Guo could not stop himself from missing the good old days at the bankrupted Tianhua factory. “The boss is nice. He was never late paying us for over ten years. Coworkers are nice to each other too. There was not much stress at work. What else could you want? I thought I would stay there forever.”

In more than ten years, people like Guo Xiaoming stayed at the same place doing the same work. They built the same routine. Today as the world of Tianhua factory collapsed, all of sudden they found themselves in an unclear position. They were pushed forward, but do not know where to go.

At the Guangzhou Train Station, Xiao Pingliang stayed at a corner waiting for his brother. He was tired and nervous, he felt relieved when he saw his brother coming on his bicycle. He went through the crowd and carefully got on the back of his brother’s bike, they disappeared in the crowded and noisy city.

Endnote:
[1] “We Want to Work,” Nanfang People Weekly, April 13, 2009
http://www.nanfangdaily.com.cn/rwzk/20090413/gj/200904240013.asp