The Impact of the China New Labour Law on Industries and Labour Income - Dissertation Example

Some of the famous labor scholars such as Professor Chang Kai, Professor Wong Liu, lawyer Jiang Jun Lu publicly argued that the fixed-term contract regulations contained in the Labour Law are necessary for protecting workers from indiscriminate termination of employment. Economists such as; the world-famous economist Professor Steven N.S. Cheung and Professor Wong Yijiang, as well as labor expert Professor Dong Baohua and Law Professor Ho Bing, argued that welfare protection compromises enterprise protection and the ability of employees to be mobile (Blanpain and Nakakubo 2010, 66).

The financial crisis did not help matters. Faced with struggling to keep businesses afloat and the prospect of liability for increased employee security under China’s New Labour Law, several businesses reportedly closed their doors. Other companies reportedly liquidated their assets to avoid compensatory damages against employee claims under the new law (Canaves 2009, A6). This research study conducts a critical analysis of China’s New Labour Law 2008 and its consequences for industries and labor income.

To set the framework for this critical analysis, descriptive research is conducted which reflects the economic developments in China over the past thirty years. This period is important because it covers the economic policies of Dang Xiao Ping who opened China’s markets to the rest of the world ending a long history of isolation. In the course of conducting this descriptive research, changes in the income of urban dwellers and rural farmers will be revealed. This will help to set a conceptual framework for analyzing the necessity and aims of the New Labour Law and its actual and likely consequences for industries and workers’ income.

This research takes a mixed-methods approach in that both qualitative and quantitative research analyses are conducted. The qualitative research methods involve a review of the literature relative to China’s economic development, the labor market, and the implementation of China’s Labour Law 2008. The quantitative research methods consist of an empirical research study conducted.