China’s labour law raises US concerns

By Geoff Dyer in Shanghai

Published: May 2 2007 18:45 | Last updated: May 2 2007 18:45

Fake DVDs and the undervalued renminbi have been the main points of discussion in the US about the rise of the Chinese economy. But another issue is gathering steam in the US – a new law that seeks to boost the employment rights of Chin­ese workers and give trade unions more influence.

While the bill was discussed behind closed doors by legislators in Beijing last week and the latest version is still a secret, the law is the subject of an increasingly bitter war of words in the US between business groups and trade unions unhappy about outsourcing jobs to Asia.

Last week the United Steelworkers, one of the biggest industrial unions, came out in favour of the law and accused US business groups of trying to block reforms. Leo Gerard, the USW president, criticised what he called the American Chamber of Commerce’s “immoral campaign to undermine Chinese workers rights”.