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Inteligencia y Seguridad

14/10/2006 | CHINA - Using Unions To Access Company Records

Stratfor Staff

The All-China Federation of Trade Unions on Oct. 12 once again said it is aggressively targeting foreign companies for unionization. Although unionization in China is generally nonthreatening to businesses, the government plans to use unions not only to improve workers' conditions, but also to gain information on foreign companies' operations.

The All-China Federation of Trade Unions on Oct. 12 once again said it is aggressively targeting foreign companies for unionization.

As Stratfor has noted before, China's recent drive to unionize 60 percent of foreign firms is a means to better control the masses and to promote Chinese President Hu Jintao's "Harmonious Society" and "New Socialist Countryside" initiatives -- but it is also a way to re-centralize the economy and better control foreign investment. Thus, the government plans to use unions to improve worker's conditions while also gaining information on foreign companies' operations.

The government does not want to push foreign companies too hard, jeopardizing the foreign investment Beijing relies on to help drive the economy, since a slowing economy would result in an employment crisis. At the same time, Hu is intent on addressing China's wealth gap. Not addressing this gap could spark a crisis of another sort as Chinese grow increasingly dissatisfied with the growing disparities between booming coast and stagnating inland provinces.

In a typical Chinese fashion, though, the government is moving slowly to avoid upsetting the fragile balance between economic growth and dispersing wealth inland that keeps the Chinese Communist Party (CCP) running. This pace follows Deng Xiaoping's classic "crossing the river while groping for stones" policy, which advises taking small steps and assessing one's balance before moving forward.

At present, Beijing is experimenting with appointing union leaders in some domestic companies. These leaders are on the government payroll, and cannot be fired by their respective companies. Such an experiment probably will not be carried out on foreign companies for a few years yet.

The implications are stark, however. A union allowed to dictate labor policies to an extent is one thing. Union representatives appointed by the government not only with the power to direct labor policies, but also with complete access to company records, is quite another. Guo Wencai, who directs the grassroots organizing department of ACFTU, said Oct. 12 that ACFTU plans to target Fortune 500 companies, specifically naming Dell Inc. and Eastman Kodak Co. Sources with one foreign company said they are almost certain their financials already have been turned over to a domestic competitor by officials. Under the new system, they might also have to share their business strategies with official union representatives.

The CCP will continue the precarious growth/wealth-dispersal balancing act for a few years, likely until after the 2008 Olympics. If by then it still faces growing internal discord, the Party will take the next step and subject foreign companies to these more draconian policies.

In the meantime, Beijing will continue to push to move foreign and domestic investment inland. It will also seek to spur domestic competition and the growth of domestic industries that can compete with foreigners in order to lessen the damage from any retreat of foreign companies from China. Predictably, those companies complying with the new policies and developing good relations with the new government will be least likely to feel Beijing's heat.

Stratfor (Estados Unidos)

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15/12/2006\|	Mexico's Anti-Cartel Operation: A Small Stone in a Big River
15/12/2006\|	Mexico's Anti-Cartel Operation: A Small Stone in a Big River
12/12/2006\|	U.S.: The Army's Stunted Transformation
12/12/2006\|	U.S.: The Army's Stunted Transformation
12/12/2006\|	India's Nuclear Negotiations Enter a New Phase
12/12/2006\|	India's Nuclear Negotiations Enter a New Phase
12/12/2006\|	Calderon's Presidential Challenges
12/12/2006\|	Calderon's Presidential Challenges
05/12/2006\|	Iraq's Evolving Relationship with Iran
05/12/2006\|	Iraq's Evolving Relationship with Iran
05/12/2006\|	The Venezuelan Vote
05/12/2006\|	The Venezuelan Vote
05/12/2006\|	EU, Kazakhstan: The Geopolitics of Energy Cooperation
05/12/2006\|	EU, Kazakhstan: The Geopolitics of Energy Cooperation
02/12/2006\|	India Records Torrid Growth in Q2
02/12/2006\|	India Records Torrid Growth in Q2
29/11/2006\|	India, Pakistan: Another Aspect to the Military Race
29/11/2006\|	India, Pakistan: Another Aspect to the Military Race
29/11/2006\|	Somalia: The Deyr Delays an Imminent Clash
29/11/2006\|	Somalia: The Deyr Delays an Imminent Clash
22/11/2006\|	Russia, the West and the Espionage Game
22/11/2006\|	Russia, the West and the Espionage Game
22/11/2006\|	Russia: LUKoil's Bold Expansion Plan
22/11/2006\|	Russia: LUKoil's Bold Expansion Plan
18/11/2006\|	Linking Russia's WTO Bid to Iran
18/11/2006\|	Linking Russia's WTO Bid to Iran
17/11/2006\|	Global Market Brief- What the Gazprom - ENI Deal Does -- and Does Not -- Mean
16/11/2006\|	Industry's New Stake in Kyoto
14/11/2006\|	India, Pakistan: Al Qaeda and the Airport Threat
13/11/2006\|	INDIA - The Abduction of a High-Tech Executive's Son
11/11/2006\|	Colombia's Multifaceted Security Problem
11/11/2006\|	U.S., Russia: The Politics Behind the WTO Talks
11/11/2006\|	CHINA - Blocking Investment to Promote Stability
08/11/2006\|	MEXICO - Jumping on the Oaxaca Bandwagon
07/11/2006\|	Mexico City Bombings: An Escalation in Tensions
07/11/2006\|	Global Market Brief
04/11/2006\|	AUSTRIA - The Kidnapping Plot Against a Crystal Heiress
04/11/2006\|	Iraq Without Bechtel
01/11/2006\|	Europe: The Taliban's Broadening Scope
31/10/2006\|	HONDURAS-Honduras' Operation Thunder: The Effort to Stem Rising Crime
31/10/2006\|	MEXICO - A Mexican Standoff Worsens
31/10/2006\|	BOLIVIA - BRAZIL: La Paz's Natural Gas Dilemma
28/10/2006\|	BANGLADESH - Conditions Conducive to a Coup?
28/10/2006\|	BRAZIL-Strength in Victory, Weakness in Office
24/10/2006\|	SUDAN-Khartoum Moves Against Foreign Intervention in Darfur
24/10/2006\|	Somalia's Islamists Court Mainstream Muslims
24/10/2006\|	IRAQ- Big Plans, Major Obstacles, for the Oil Sector
24/10/2006\|	IRAQ - The Coming Change in U.S. Strategy
21/10/2006\|	U.S.: Al Qaeda and the U.S. Midterm Elections
21/10/2006\|	Japan's Nuclear Message for China
18/10/2006\|	Time for Iran's Close-Up - Part 1
18/10/2006\|	Time for Iran's Close-Up - Part 2 - South Asia: Still Feeling the 'Washington Effect'
18/10/2006\|	The EU Scrambles for a Russia Policy
18/10/2006\|	Chemical Risk: Mass Storage and Transport as Weapons, Not Targets
18/10/2006\|	RUSSIA - Sunset for Shtokman?
18/10/2006\|	RUSSIA, BULGARIA, GREECE- The Pipe Dream Pipeline
14/10/2006\|	IRELAND -The Latest 'Tiger Kidnapping' Trend
14/10/2006\|	PAKISTAN - Rockets, Coup Rumors and Musharraf
14/10/2006\|	RUSSIA - Americans as Targets of Ultranationalist Street Gangs
14/10/2006\|	RUSSIA -The Kremlin's Hands-On Energy Policy
14/10/2006\|	RUSSIA -The Kremlin Puts LUKoil Under Pressure
07/10/2006\|	North Korea: Beijing's Diminishing Power of Persuasion
05/10/2006\|	Nigeria: The Threat Against Bonny Island
05/10/2006\|	Kuwait: Moving to Become an Oil Market-Mover?
05/10/2006\|	Dirty Bombs: Weapons of Mass Disruption
29/09/2006\|	SOMALIA - Ethiopia's Islamist Fears
28/09/2006\|	IRAN, RUSIA - A Nuclear Marriage of Convenience
27/09/2006\|	MEXICO - Passing the Oaxacan Buck
27/09/2006\|	Hezbollah's Iranian Connection
27/09/2006\|	SOUTH KOREA - Rethinking its Military Future
24/09/2006\|	THAILAND - A Possible Respite in Southern Violence
23/09/2006\|	The World Bank at a Crossroads
23/09/2006\|	KENYA - Corruption as Catalyst for Crime
23/09/2006\|	BOLIVIA - Military Bases in the Lowlands
30/08/2006\|	SRI LANKA- Strategic Potential on Hold
30/08/2006\|	A Polite Meeting About Missiles
27/08/2006\|	EU: Energy Security and the Nuclear Genie
02/08/2006\|	SOMALIA - Islamists and Clan Politics
02/08/2006\|	CUBA - A New Castro Assumes the Old Power
30/07/2006\|	U.S., India: Hammering Out a Nuclear Deal
30/07/2006\|	AFRICA - Toward a Three-Way Conflict in the Horn of Africa
28/07/2006\|	Perception and Reality in the Oil Market
28/07/2006\|	Chavez's World Tour
23/07/2006\|	MEXICO - Acapulco as a Main Front in the Drug Wars
19/07/2006\|	IRAN - Using the Israeli-Hezbollah Conflict Advantageously
15/07/2006\|	The Economic Impact of an Israeli-Lebanese War
14/07/2006\|	Middle East Crisis: Backgrounder
06/07/2006\|	SLOVAKIA - An Unlikely Coalition
06/07/2006\|	USA-The GOP Challenge: Retaining Religious Voters
06/07/2006\|	BOLIVIA - A Highland Constitution and Lowland Discontent
06/07/2006\|	MEXICO - Facing Its Greatest Democratic Test
30/06/2006\|	Sri Lanka, India: The Tigers Try to Charm New Delhi
30/06/2006\|	Sri Lanka, India: The Tigers Try to Charm New Delhi
30/06/2006\|	Mexico's Economic Choices in the Upcoming Election
30/06/2006\|	Mexico's Economic Choices in the Upcoming Election
30/06/2006\|	Global Market Brief
30/06/2006\|	Global Market Brief
26/06/2006\|	China: Crisis and Implications
26/06/2006\|	China: Crisis and Implications
24/06/2006\|	UKRAINE-Timoshenko, the Turkmenbashi and a Dilemma for Gazprom
24/06/2006\|	UKRAINE-Timoshenko, the Turkmenbashi and a Dilemma for Gazprom
22/06/2006\|	NORTH KOREA - Another Bluff in the Korean Missile Game?
22/06/2006\|	NORTH KOREA - Another Bluff in the Korean Missile Game?
20/06/2006\|	ROBERT ZOELLICK - Washington Staffs for a New View of China
20/06/2006\|	ROBERT ZOELLICK - Washington Staffs for a New View of China
20/06/2006\|	NORTH KOREAN - The Logic of a North Korean Missile Test
20/06/2006\|	NORTH KOREAN - The Logic of a North Korean Missile Test
20/06/2006\|	MEXICO - Why the Upcoming Election Matters
20/06/2006\|	MEXICO - Why the Upcoming Election Matters
20/06/2006\|	WORLD CUP-The Potential -- and Reality -- of Violence at the World Cup
20/06/2006\|	WORLD CUP-The Potential -- and Reality -- of Violence at the World Cup
05/06/2006\|	Key Steps to Avoid Falling Victim to Crime
04/06/2006\|	Self-Protection: Acquiring -- and Practicing -- the Necessary Skills (Part III)
03/06/2006\|	Cosmetic Change in China's Economy
02/06/2006\|	Self-Protection: Analysis and Planning II
02/06/2006\|	Mexico: Of Soccer and Electoral Strategy
01/06/2006\|	Self-Protection: Assessing Threats and Vulnerabilities
01/06/2006\|	U.S. Perceptions of a Chinese Threat
31/05/2006\|	Bicycles: Another Lethal Weapon in the Militant Arsenal
29/05/2006\|	Peru, Colombia: Elections and Second Thoughts on Populism
28/05/2006\|	Kaibiles: The New Lethal Force in the Mexican Drug Wars
23/05/2006\|	The U.S. Immigration Debate's Fallout in Mexico
17/05/2006\|	EU, Latin America: Summit, Or Pique?
17/05/2006\|	Brazil: When Violence Reaches a Tipping Point
13/05/2006\|	Beheadings in Mexico: The Foreign Element in Mexico's Drug Wars
07/05/2006\|	Bolivia's Energy Nationalization: Opting for Short-Term Gains
07/05/2006\|	Diplomatic Snubs and Sino-U.S. Relations
06/05/2006\|	China, Russia, U.S.: Washington's Strategic Insults
06/05/2006\|	U.S.: CIA Director Porter Goss' Resignation
04/05/2006\|	No Relief at the Gas Pumps
02/05/2006\|	Bolivia and Leftward Movement in Latin America
02/05/2006\|	Bolivia: Nationalized Oil and Gas
30/04/2006\|	COLOMBIA- A Slaying Threatens the President's Re-Election
25/04/2006\|	Repsol in Bolivia: When Business Serves Foreign Policy
24/04/2006\|	The Shiite Schisms
24/04/2006\|	Al Qaeda's New Focus on Sudan
23/04/2006\|	Russia: Pipeline Monopolies Stymie Infrastructure Improvement
23/04/2006\|	Iraq: Jaafari Steps Aside -- Not Down
21/04/2006\|	Bush, Hu and the 'Accidental' Journalist
21/04/2006\|	The Shiite Schisms
21/04/2006\|	The Pakistan-Jihadist Connection
18/04/2006\|	PNA: Hamas' Message in the Tel Aviv Attack
18/04/2006\|	Countdown to a Coup in Nepal?
18/04/2006\|	Russia: The Centralization Trend Continues
18/04/2006\|	Vietnam: The Party Congress Tackles Corruption
17/04/2006\|	India, Venezuela: Caracas Diversifies its Oil Markets
13/04/2006\|	North Korea: Weighing the Benefits of the Nuclear Card
13/04/2006\|	Idealism, Realism and U.S. Foreign Policy
10/04/2006\|	The Saudi Militant Threat in Israel and the Palestinian Territories
08/04/2006\|	Political Instability in Europe's Core
06/04/2006\|	Ukraine: An Orange Reunion?
06/04/2006\|	Italy's Attraction for Islamist Militants
05/04/2006\|	Venezuela's Oil Dreams
30/03/2006\|	RUSSIA: WTO Accession Still Not a Done Deal -- From Any Point of View
28/03/2006\|	Thailand's Political Unrest: The Significance for Multinationals
28/03/2006\|	ITALY - Running the Electoral Numbers
27/03/2006\|	BRAZIL- Continuity at the Finance Ministry
24/03/2006\|	IRAN - Reading Between the Lines of Khamenei's Blessing
24/03/2006\|	GERMANY -The German Weapons - Smuggling Scandal: Opportunities for Merkel
24/03/2006\|	SPAIN- ETA's Cease-Fire and its Search for Viability
24/03/2006\|	CORRUPTION-Execution in China: Sending a Message to Big Business
24/03/2006\|	Residential Security - PDF
24/03/2006\|	CHINA-Pumping an Iranian LNG Deal for Oil
22/03/2006\|	INDONESIA- Violent Protests: A Message to Multinationals?
22/03/2006\|	The Unlikely Terrorist Threat Against U.S. Agriculture
20/02/2006\|	INDONESIA-Yudhoyono's Plan for Indonesia's Resurrection
20/02/2006\|	Nigeria - Same News, Different Network
18/02/2006\|	India: Hopes for Nuclear -- and Geopolitical -- Power
11/02/2006\|	India: King Abdullah Gets the Royal Treatment
11/02/2006\|	Drugs, Weapons and Violence: The U.S.-Mexican Border's Hot Commodities
11/02/2006\|	Mexico, U.S.: Election-Year Rhetoric on Both Sides of the Border
07/02/2006\|	China's Motive in Oil Deals with India
26/01/2006\|	The Bin Laden Tape and the Strike in Damadola
25/01/2006\|	Annual Forecast 2006: The Year of Great and Near-Great Powers -- Part II
22/01/2006\|	Annual Forecast 2006: The Year of Great and Near -Great Powers -- Part I
19/01/2006\|	EU: Austria's Presidential Problem
19/01/2006\|	Taiwan: Chen Risks China's Ire to Visit Gadhafi
14/01/2006\|	Thailand and the Possible Terrorist Threat to Tourists
14/01/2006\|	Travel Security: The Importance of Understanding the Risks
12/01/2006\|	Arms Market: Accident or careful planning?
12/01/2006\|	Iran's latest nuclear provocation : the resumption of nuclear fuel
06/01/2006\|	Russian gas: This is not all about Moscow -- Germany has a stake as well
20/12/2005\|	Evo Morales won Bolivia's presidential elections Dec.18: Morales Signals Left, Turns Right
01/08/2005\|	Argentina: Kirchner's Populism and a Darkening Economic Future
06/01/2005\|	Iran - Rice: 'If negotiations have been exhausted, we have the votes'

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Peoples of the Earth | Martin E. Andersen

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