I'm pretty sure the MSM likes covering this about as much as the Iraq war protests in '04, but more and more reports are piling up. There is something pretty wild going on in China right now.
Basically, a bunch of Chinese workers have spontaneously gone on strike, all over the country. This is all coming out of China, meaning the scope of the problem is probably 100x larger than reported.
(Background on Xinhua, the news/intelligence organ.)
It started with scrutiny of all the Foxconn suicides. Something like ten Foxconn workers have killed themselves in the past year, and the western press started scrutinizing this massive supplier for Apple, HP, etc.
Foxconn's response was to hike pay 30%.
NYT article on Foxconn. One of many.
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Some time after the Foxconn story broke, there were reports of a sort of spontaneous/unauthorized strike at a Honda parts plant. Workers were given a substantial raise and that was supposed to be that.
Until there were two more (REPORTED) strikes at Honda plants.
As a result, Honda said, its automotive assembly plants in nearby Guangzhou, the provincial capital, would remain closed on Thursday. It is the second time in as many weeks – following similar industrial action at a nearby transmission factory – that the Japanese carmaker’s China operations have been held hostage by worker unrest.
...Employees at Honda Automotive Components Manufacturing, the transmission plant, secured an increase of 24-33 per cent late last week.
FT
... and it also turns out, there are strikes going on many other industries.
Bloomberg (one example).
Chinese workers clashed with police (50 reported injured). [FT article, above]
I can tell the business media is terrified when I see sentences like this: "There is no evidence that workers at different factories are co-ordinating their activities."
And I can tell that Chinese leadership is terrified when I see sentences like this: "We had decided at the beginning of the year to raise wages 10 per cent by July 1, but had never announced this to the staff."
Not sure how directly connected -- but there was also a "flash strike" at a Hyundai factory in India around the same time.(Reuters.)
Which leads me to wonder... Is this just a simple re-balancing, or is it something bigger? Will there be one wave of strikes, ending in a reasonable adjustment, or are there going to be waves of strikes?
Assuming that this isn't de-stabilizing, this is good for everyone. Although China's currency remains parasitically undervalued, higher wages are good for Chinese workers and good for US competitiveness (after all, thanks to these deficit hawks we're facing a lost decade of stagnant wages). (See Krugman generally).
Caveat: yes, I know that China and India are huge countries, and that none of this could be causally connected at all. It might not be in the Zeitgeist.
BUT, why would the Business press and establishment media be paying any attention to a successful strike? They wouldn't. They'd ignore labor victories deliberately.
So if they're reporting it, it's undeniable and important. That's my reasoning.
UPDATE: I'm in the middle of studying for the Bar Exam, and getting this diary on the rec. list has basically made my week.