Op-Ed Contributors

Addressing social conflicts

By Qin Xiaoying (China Daily)
Updated: 2010-06-11 07:55

High attention and effective precautionary measures are badly needed to prevent any similar conflicts from ending tragically.

The wide income gap between urban and rural areas and among different social groups, especially in the context of a rapid economic growth, is one of the underlying factors behind the emerging imbalance and social instability.

Largely coming from impoverished rural areas in neighboring provinces, many of these young Chinese employees, either in Foxconn or Honda, have been under huge psychological pressure due to the wide economic gap between the booming city and their less-developed homelands.

A reluctance to return to their hometowns, coupled with their own shabby living in these lavish cities, may have bewildered many of these employees.

The prolonged mental stress, ineffectively ventilated, may have led them to take extreme measures.

After three decades of high-paced development since the reform and opening-up, the low-cost labor advantage China enjoyed has now begun to subside.

Quantity-focused trade has been the main driver of China's galloping economic machine. The low production cost, which has been mainly attributed to China's cheap labor, has given its products a sharp edge in world markets. However, the global financial tsunami has prompted the export-based economy to shift its focus to expanding domestic demand.

At the same time, the country has realized the urgency of taking effective measures to increase technological content in its exports and push for the much-needed industrial upgrade.

The shift in the country's economic focus, which makes it necessary for domestic enterprises to employ and cultivate highly educated and skilled workers, will inevitably result in an increase in their labor cost.

Related readings:  Chinese govt promises to close income gap  Urban-rural income gap widest since opening-up  Minimum wage hike to bridge income gap  Tax system widening the income gap

In the context of a widespread economic growth, any attempt by employers to keep employee wages low to maximize profits will likely fuel labor disputes.

Having grown up in a market economy, China's younger generation has yet to cultivate a long-term and healthy outlook to life. Cell phones, computers, TVs and automobiles are being regarded as indispensable to living.

Under these circumstances, any setback or failure to satisfy their demands will be deemed as failing in life, which will possibly cause them to take extreme steps.

Despite its rapid economic development over the past decades, China is facing many latent social contradictions and problems not seen previously.

Hopefully, the recent issues at Foxconn and Honda will open the government's eyes to these and similar conflicts in society.

The author is a researcher with China Foundation for International and Strategic Studies.