From the Publisher
"Presents the inconvenient truths about China and globalization that flat worlders have overlooked."
-Clyde Prestowitz, author of Three Billion New Capitalists
"Anyone running a company that outsources manufacturing to China, or is thinking of doing so, needs to read this book."
"The gritty, corrupt reality of the Chinese economic miracle is the great business story of our time and Alexandra Harney has got it."
-Karl Taro Greenfeld, author of China Syndrome
Dreaded by competitors, "the China price" has become "the lowest price possible," the hallmark of China's incredibly cheap, ubiquitous manufacturers. Financial Timeseditor Harney explores the hidden price tag for China's economic juggernaut. It's a familiar but engrossing tale of Dickensian industrialization. Chinese factory hands work endless hours for miserable wages in dusty, sweltering workshops, slowly succumbing to occupational ailments or suddenly losing a limb to a machine. Coal-fired power plants spew pollutants into nearly unbreathable air. Migrants from the countryside, harassed by China's hukousystem of internal passports, form a readily exploitable labor pool with few legal protections. The system is fueled by Western investment and, Harney observes, hypocrisy. Retailers like Wal-Mart impose social responsibility codes on their Chinese suppliers, but refuse to pay the costs of raising labor standards; the result is a pervasive system of cheating through fake employment records and secret uninspected factories, to which Western companies turn a blind eye. But Harney also finds stirrings of change; aided by regional labor shortages, rising wages and intrepid activists. Chinese workers are demanding-and gradually winning-more rights. Packed with facts, figures and sympathetic portraits of Chinese workers and managers, Harney's is a perceptive take on the world's workshop. (Mar. 31)Copyright 2007 Reed Business Information
The Financial Times Limited
Anyone running a company that outsources manufacturing to China, or is thinking of doing so, needs to read this book.
Financial Times reporter Harney paints a vivid portrait of factory life in the country that sells consumer goods for the lowest price possible. With a manufacturing workforce of 104 million people, China dominates global production of consumer goods, selling everything from clothing to computer parts at half or even one-fifth the amount that it would cost to make them in the United States. The author, who lives in Hong Kong, focuses on the consequences of China's ceaseless pursuit of economic growth, from unethical business practices to pollution to an epidemic of occupational diseases. Drawing on interviews, she takes us into factories and their dormitories to show youths who have flocked from the countryside to take dangerous manufacturing jobs. We meet 17-year-old Li Gang, who worked 18 hours a day, seven days a week to earn $39 monthly as a zagong ("dogsbody"), the lowest-ranking employee in a plastic-bag factory; and Li Luyuan, 20, who sleeps in cramped quarters with a dozen other girls, trying to save enough money from her job producing DVDs and sweaters to buy a new home for her parents. These migrants are taking legal action to win better working conditions, posing a challenge to efforts to maintain the China price. Harney brings us into model factories, where rules on working hours and product safety are followed, and into the "shadow" factories (often operated under contract to the same owners) where anything goes in the drive to produce cheaper products. Despite efforts by companies buying consumer goods from China to enforce a code of conduct, most suppliers falsify time cards, hide the use of unapproved materials and otherwise engage in dishonest practices. Western importersknow it and often look the other way. In the face of growing labor unrest and pollution, Chinese officials hope to move the economy away from reliance on exports by fostering domestic consumption. Essential reading for anyone concerned about how dangerous pet food and children's clothing manufactured in China make it into American stores.