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US-China trade war – why everything you thought you knew is wrong

The popular perception of both the United States’ and China’s labour practices is, in fact, inverse to the reality, and has been for decades

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President Donald Trump speaking at a campaign rally in Ohio, in the United States, in August. Photo: AFP
Bradford H.B

A recent job fair at Koch Foods chicken plant in Forest, Mississippi, provided a rare opportunity for Eddie Nicholson. Even though he and fellow African-Americans in the state have some of the worst employment profiles in the United States, Nicholson was confident he could push the company to pay him US$15 an hour – US$4 more than typically offered for slaughtering, skinning, dismembering and packing chickens.

Days earlier, US Immigration and Customs Enforce­ment (ICE) officers had raided the Koch plant, along with others nearby, netting almost 700 unauthorised meat­packing workers, most of them from Mexico. Suddenly, with far fewer available workers in the area, Nicholson figured he had some leverage to negotiate.

Unfortunately for low-skilled workers like Nicholson – despite images of ICE officers breaking down doors on the news – such raids in the US are rare. Rarer still are charges brought against employers who hire unauthorised migrants. In fact, the country’s labour market relies on them, even while in a parallel publicity-verse President Donald Trump claims to be building a wall along the US-Mexico border.
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Despite decades-old laws blocking employment of unauthorised labour, estimates say 8 million of the US’ 12 million illegal aliens are unlawfully employed, and this within a foreign-born population approaching 50 million – most of whom also work in unskilled positions and com­pete against blue-collar Americans for jobs. One group that should be paying close attention to what lies beyond the headlines of these and other tangential issues is the Chinese government.

Despite widely televised raids on undocumented migrant workers in the United States, such events are, in fact, rare. Photo: AFP
Despite widely televised raids on undocumented migrant workers in the United States, such events are, in fact, rare. Photo: AFP
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As the US-China trade war rumbles on, with China accused of currency manipulation, obstructing market access and intellectual-property theft (through espionage and forced technology transfers), there is one issue conspi­cuously absent from the ongoing dispute, and it is this essentially two-faced US immigration policy.

Allegations of labour-market manipulation in the US have been levelled against the meatpacking and agri­cultural industries for years, by the likes of activist Cesar Chavez, elected politicians Romano Mazzoli and Lamar Smith (a Democrat and a Republican, respectively), the AFL-CIO union (in its post-war days at least) and advocacy groups Farmworker Justice and Numbers USA. Unlike goods manufacturers, meat producers and growers can’t out­source their production to cheaper labour markets, being inextricably tied to the land, livestock and local water sources. What they can do, however, is insource.

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