Factories Staying Put in China

In December 2006, the Qingdao Morning Post reported that 30 South Korean employees from Xinyi Leather Products and Xinwu Leather Products had suddenly left, leaving 300 Chinese employees unpaid and US$14 million in debts to local banks. Quoting anonymous local officials, the Shanghai-based 21st Century Economic Report said authorities were increasingly tightening environmental regulations and enforcing workers’ rights. In the year that followed, more South Korean companies used the same exit strategy. As of January, at least 103 Korean companies had reportedly left Shandong Province., with one company in Yantai, Segang Textiles, left behind 3,000 employees and US$4.17 million in debts.

Read →

Comments on this post are for paying subscribers