For China's reforms, Guangdong is where the rubber hits the road
'Factory of the world' will be a test of whether sweeping changes can be made while balancing interests of local governments, businesses and workers
Just days after China announced sweeping reforms to revitalise its economy, several hundred striking workers rallied outside a Nokia factory in its wealthiest and most industrialised region shouting: “Protect our rights!”
This flare-up over labour benefits in the vast factory belt of Guangdong province underlines the main difficulty in pushing through the reforms – the need to maintain stability while bringing changes in laws, businesses and society.
“We have hopes for a better China,” said one worker surnamed Huang who said he was forced to accept new contracts with worse terms of employment after the Finnish company sold its mobile-phone business to US software giant Microsoft.
“We’re striking because the system isn’t fair and doesn’t protect us enough. From a regular citizen’s perspective, I hope for a more harmonious and fair environment … I hope the reforms help us.”
The aim of the reforms is increasing productivity and transforming China’s export-based economy into a consumption- and services-driven model.
At the same time, powerful local governments and state-owned monopolies must be made to give up some of their powers.
More than most other regions, the test of the reforms will come in Guangdong, where slowing international demand has badly hit factories and manufacturing plants.