Hard hit by both the trade war and the pandemic, the factory closures in China are skyrocketing. The unemployment number could be as high as 100 million if both city and migrant workers are taken into consideration according to Miles Guo.
There are news both within and outside of China indicating the rapid job losses.
CCP’s vampire-style economy
In recent decades the Chinese Communist Party (CCP) has been legitimizing its reign through economic growth. In addition, the CCP has been mentally kidnapping the Chinese people by playing the nationalism card to make people believe that China is constantly under threat from foreign imperialism and only the CCP can save China.
The CCP has been taking full credit for the economic boom after China joined the WTO (World Trade Organization). But the emperor’s new clothes slipped away as the trade war unfolds. The CCP’s vampire-tyle economic model is blood-sucking of both the Chinese and American people, a predatory economy made apparent during the pandemic.
The US and Japan are paying companies to move out of China
Japan allocated $2.2 billion to move its companies out of China according to an announcement made by the Japanese government on April 9. On the same day, White House National Economic Council Director Larry Kudlow told FOX News that the US government would ‘pay the moving costs’ of American companies to leave China:
Pandemic is the fatal blow to China’s export-led economy
Even though one of the reasons for the CCP to cover up the virus infections is to make people go back to work, many factories had to close due to dwindling orders. The Chinese Social Media is now flooded with pictures and posts of factory closures. Here are some examples:
Title: Advices for fellow workers
The pandemic is worsening abroad. Stock market crashes are pushing the American and European countries into brinks of economic recession. Many companies imposes hire freeze.
- Foxconn has imposed hire freeze starting March 18 affecting all its production lines in mainland China. (All new hires will be released before coming to work) The next hire date will be postponed to end of April at the earliest.
- Today is the last day for Great Wall Development to hire limited number of employees. Hire freeze will start tomorrow.
- Hire freeze for Toptouch starts today!
- Hire freeze for De Tong Xing is in effect.
- Hire freeze for Sicamp is in effect.
- Hire freeze for Kaiseric International is in effect.
- Hire freeze for Deep-Rand Apparatus Limited is in effect.
- Hire freeze for MSI & BYD, etc are in effect.
A word of advice: please stay put and don’t change job if your current one is stable.
Finally, we are facing massive factory closures, a sudden change from labor shortage in the beginning of the year to the current job shortage. We are in this together, so we believe in our country and we can meet the challenge to overcome this year’s crisis.
Above: Due to severe pandemic abroad, our client has halted all orders. All work will be halted between April 1st and July 31 with salaries paid prior to April 1st. In the meanwhile, notifications about work resumption will be sent out to employees around Aug 1st about the production resumption date. Please notify your peers of this announcement.
Zhong Shan Jia Ya Clothing Company
March 25, 2020
Above: Jia He factory closed its door.
Factory name: undisclosed
Due to novel coronavirus, our company has been mitigating for a long time to protect the lives and health of our employees.
Our most important client American company Fossil halted its orders, so our factory has to stop operation.
For those who decide to quit jobs now, all salaries will be paid in full for the month of Feb and March.
The remaining employees will take a 3-month unpaid vacation.
Above: Foxconn hire freeze started on March 18, 2020.
Above: The factory is forcing workers to take long vacation, because there is no more orders from abroad. After 10-days’ work, we have to find another job.
Picture above: Please stay home and don’t go out looking for work. All export orders were cancelled, so we all have to find new jobs.
Picture above: The company will take 2-3 months vacation starting April 1 due to order cancellations caused by pandemic abroad. The date to resume working is TBD (to be announced). Each employee will get 40 Yuan compensation per day if you return to work within seven days of notification. Those who cannot return within seven days of the notification will be treated as volunteer resignation. All compensations will be paid at the end of the year.
Due to cancelled orders, our factory decided to stop production:
- All employees will take a long vacation starting April 1.
- Those of you who are required to work during the vacation will be contacted.
- The salary during the vacation will be announced separately.
- The date to resume working will be formally announced.
Due to severe pandemic abroad, all orders were canceled. Our factory decided to take a few days’ vacation. The date to resume working will be announced later.
March 30, 2020
Due to reduced order and port closures, our factory decided:
- Starting on April 1, workers will alternate between half-month-work and half-month-rest with half month pay. The date to return to normalcy will be announced later.
- All managers will be paid at 60% of the regular salary. Full salary will be restored after the pandemic.
Due to the pandemic, our company has suffered financially. So we decided to halt production starting on March 31. The date of resuming work will be announced.
Starting on April 1, only two production lines will be operating. Workers will alternate between half-month-work with 15-day full pay and half-month-rest with 20 Yuan per day. An additional 200 Yuan will be paid to those who complete the 15-day work.
This will continue until the end of the pandemic.
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