China's clothing factories battle with US tariffs
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Diplomat
6 hours ago
- The Diplomat
International Labor Standards: The Missing Link in China-US Trade Negotiations
The China-U.S. trade war is often reduced to a dispute over cheap exports, but the real fault line runs deeper. China has built a powerful industrial strategy on the backs of low-cost labor and state-backed incentives, successfully attracting advanced multinationals and bringing their technology and supply chain resources into the country. While the United States outsourced its basic manufacturing, China turned so-called 'low-end' jobs into a launchpad for dominating high-value industries. This strategy has worked. BYD, once a low-tier battery maker, is now a top global electric vehicle manufacturer, beating Tesla in worldwide EV sales. Apple, for its part, poured billions into China – not just in assembly lines, but in R&D. As journalist Peter McGee documented in 'Apple and the Transformation of Chinese Manufacturing,' Apple's strict quality and engineering standards forced Chinese suppliers to level up. What began as low-cost outsourcing became a sophisticated, self-reinforcing innovation engine. This has become a key driver of innovation and global competitiveness in China's manufacturing sector. As the Chinese government aligned its labor policies with the profit motives of U.S. corporations, Washington debated tariffs. All this while, companies continue to rely on China's cheap labor to meet shareholder demands. China, in turn, gained leverage: any disruption to this arrangement would threaten the survival of many global brands. This entanglement has become so tight that it indirectly but powerfully shapes U.S. policy toward China, through the commercial interests and logistical dependence of American companies operating in China. But there's a darker cost buried in the foundations of this success. For over two decades, China Labor Watch has uncovered systemic labor issues in the supply chains of major U.S. and global brands operating in China. These are not isolated incidents, but are structural features of a model that exploits rural migrant workers, tolerates weak enforcement of labor laws, and prohibits independent unions. Global companies continue to profit from it. This exploitation does not just serve short-term commercial interests. It underpins China's ambitious vision of the 'great rejuvenation of the Chinese nation' and advancing its global hegemonic strategy of technological dominance and leadership. Even as parts of manufacturing move to Southeast Asia, those operations remain closely tethered to Chinese supply chains. The low-cost advantage remains China's unshakable core. If the U.S. wants to reduce its dependency and rebalance trade on fairer terms, it cannot ignore the labor question. It must confront China's labor governance head-on – even if doing so challenges American business interests in the short term. The Chinese government, for all its claims in its Constitution and the Communist Party's charter that China is a 'socialist state' that is 'led by the working class,' has built its economic ascent on the backs of exploited workers. While it publicly touts its commitment to workers' well-being, it has never admitted to the systemic nature of labor violations. Instead, the party-state continues to sidestep the issue through an official narrative of 'striving for workers' well-being,' and blame is deflected to multinational corporations. Many Chinese citizens, including some government officials, genuinely believe that the CCP's system can improve workers' lives. The structural roots of labor exploitation, inherent in the party's governance and economic model, are obscured. Labor rights activism thus becomes a sore subject for the government. To them, it is not just about a call for better wages or working conditions, but a direct challenge to the CCP's self-image. It exposes the ideological gulf between its promises and the lived experience of Chinese workers. If party leaders deny the existence of labor exploitation, they are telling an outright lie that will anger many workers; if they address the issue, it legitimizes that reality is at odds with the CCP's charter. This is precisely why labor advocates are treated with suspicion and often repression – but also some degree of caution. During the 2015 '709 Crackdown,' China jailed dozens of human rights lawyers, but took a softer approach with labor activists, quietly releasing them or assigning them jobs after detention to avoid international attention further escalating the issue. The goal was clear: to suppress attention and not provoke an international firestorm. A similar pattern played out in 2025, when Brazil sued BYD for alleged forced labor. Instead of lashing out at international critics, as it often does in response to human rights issues, China responded discreetly and promised an investigation. These examples reflect the nuance and sensitivity that the government applies to labor issues, as compared to human rights issues that it often rebuts. This different approach underscores the potential for labor issues to compel government action and, in turn, how international labor standards can be used as a tool for change. In other words, for the Chinese government, labor conditions resonate where abstract human rights appeals do not. From factory workers to office employees, the majority of China's workforce faces long hours, low wages, and little social protection. Labor violations aren't theoretical; they are everyday realities that could fuel domestic pressure and policy reform if exposed. Tools to address these problems already exist. In the United States, the Uyghur Forced Labor Prevention Act (UFLPA) and Section 307 of the Tariff Act have led to meaningful enforcement actions, even if many Uyghur workers are rarely found in primary factories supplying to the U.S. In the future, as additions to the UFLPA entity list are expected to slow, U.S. enforcement could shift toward broader supply chain interventions through the Withhold Release Orders (WROs), further expanding to address forced labor issues in supply chains, using enforcement to promote fairer labor standards. Yet despite the tools at Washington's disposal, labor concerns remain sidelined in mainstream trade discussions, drowned out by debates over tariffs, trade deficits, and subsidies. These traditional tools have struggled to move the needle on Chinese economic policy, which is largely built upon China's persistent low labor cost advantage. Labor, by contrast, is a pressure point the Chinese government is less prepared to resist, precisely because it implicates both the CCP's legitimacy and its economic model. Labor issues directly affect the immediate interests of the Chinese people, which concerns the government, and international labor standards can thus serve as an effective mechanism to expose the deeply rooted structural flaws in China's governance model. This is the moment for the United States and its allies in Europe to unite around labor standards as a strategic pillar of trade policy. As China-EU tensions continue to simmer, a coordinated, transatlantic approach, through shared standards, trade mechanisms, and enforcement frameworks, could significantly increase leverage over China's labor practices. This strategy not only advances sustainable global supply chains but also balances immediate commercial interests with long-term labor equity, benefiting workers in both the United States and China. Yes, there will be obstacles: political division among allies, corporate resistance, and China's likely counterattacks. But the stakes are too high to ignore. Fair labor standards not only strengthen global supply chains; they offer a pathway to a more just global economy, one where competitiveness does not rely on exploitation. Reshaping the rules of global trade will require more than rhetoric. It will require placing workers – American, Chinese, and others – at the center of policy. And that begins with recognizing that labor is not a side issue. It is the issue.
Japan Times
8 hours ago
- Japan Times
SmartNews planning to hire Mitsubishi UFJ and Nomura for Tokyo listing
Japanese news aggregation app operator SmartNews has hired Mitsubishi UFJ Morgan Stanley Securities and Nomura Holdings as lead managers for its initial public offering, according to a person familiar with the matter. SmartNews, valued at $2 billion in 2021, may list in Tokyo as early as next year, the person said, asking not to be identified because the information isn't public. The Japanese firm has met global investors in cities including Hong Kong, Singapore, New York and London to gauge investors' interest, according to people with knowledge of the matter. SmartNews said in an emailed response that no decision has been made. Nomura's representative declined to comment, while Mitsubishi UFJ was not immediately available. The potential listing of SmartNews will add to the momentum of sizable global deals in Japan. JX Advanced Metals in March raised ¥439 billion ($3 billion) in the nation's biggest listing since SoftBank Corp., while lender SBI Shinsei Bank has applied to get relisted. The nation's IPO market has raised ¥551 billion so far this year, more than double the same period last year, according to data compiled by Bloomberg. Founded in 2012, SmartNews uses algorithms to sift through global content and provides access to news from more than 3,000 media sources. The company also has a user base in the U.S.
NHK
9 hours ago
- NHK
Tourist boom fades for Japan's department stores
Japan's department stores are reporting a sharp decline in duty free sales despite record arrival numbers for inbound tourists. What gives? It turns out big spenders like a bargain too.
