Outlook on Light Manufacturing in China: March 2016

 

Posted on March 4, 2016 by China Briefing

The below is a sample of Cascade Asia Advisor’s monthly report on light manufacturing across emerging Asia, available for purchase through the Asia Briefing bookstore. The report is a 4-5 page executive-ready assessment and outlook designed to help companies anticipate labor risks and dynamics across key manufacturing countries in Asia. Countries of coverage include Cambodia, China, Indonesia and Vietnam.

Provincial authorities in Guangdong, Zhejiang and Fujian have issued new local regulations encouraging their citizens to marry earlier and have more children. Benefits under these local rules may include greater marriage leave and longer maternity and paternity leave entitlements. Employers are encouraged to review their internal policies and procedures related to these matters and to continue monitoring efforts for any further changes.

 

Following approval by the National People’s Congress meeting, the final text of China’s 13th Five-Year Plan (2016-2020) will be fully released this month. Among other goals, the plan includes an oversight mechanism for an emission permit system and a water management system. The full implications for light manufacturing will be better understood when the text is released this month but should be closely monitored.

On the exchange rate, Chinese monetary authorities say they will abstain from sudden renminbi devaluations as a tool to support the slowing economy and forecasts of a seventh consecutive month of manufacturing contracting.

Guangdong: The province is looking to implement a regulation providing women with 1-2 days off when suffering menstrual pain. The regulations being proposed in Guangdong say that a medical certificate for pain would be required. The certificate would be valid for 6 months.

Zhejiang: Companies sourcing in or near Hangzhou should note the upcoming G20 summit meeting there in September as there may be supply chain implications. Though it is still six months off, the Hangzhou environmental protection bureau, on orders from the central government, is rigorously inspecting the emissions of businesses in the city, mainly in heavy industries. Some 75 dyeing plants in Shaoxing are to be closed and renovated before before the meeting with another 10 to be shut down in the Shaoxing Paojiang Economic and Technology Development Zone. Working in concert with the environmental protection department, the police have vowed to “punish polluters”.