China imports North Koreans to beat rising wages

Discussion in 'China' started by Yusuf, Nov 21, 2012.

  1. Yusuf

    Yusuf GUARDIAN Administrator

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    BEIJING: China is tackling labour shortage and rising wages by importing thousands of North Korean workers from across the border. The Chinese immigration has permitted a second batch of 20,000 workers bringing the total number of North Koreans in China to 40,000 in recent months, according to media reports.

    Most imported labour is women because the North Korean government is wary of political dissidents escaping the country if more men are allowed. Besides, China wants to avoid a rush of North Korean men after violent incidents resulting in the death of some Chinese citizens in past months.

    Earlier batches of manpower imports from North Korea, which was confirmed by official sources in Beijing, were used in factories in the border cities of Tumen and Huchun in Jilin Province along the Duman River.

    Most North Koreans have been given "industrial student" visas to allow their employers pay lower wages ranging between $150 and $250 a month, according to reports from South Korea, which keeps a close watch on developments in North Korea. This is about a third of the wages of regular Chinese workers.

    Rising labour prices have caused anxiety among foreign investors and resulted in neighboring Vietnam attracting some of the investments earlier destined for China, observers said. The move to import cheap and usually obedient North Korean women workers is also aimed to keeping project costs low in China.

    Diplomatic sources in Beijing said China may be violating the United Nation sanctions on North Korea by importing workers, and boosting its economy, because the imported workers will send back hard currency to their families.

    The new batch of workers are being sent to Dandong area of China's Liaoning province along the Apnok River which separates the two countries.

    They will work in factories that manufacture clothes, food and IT products, or in mines. The imported workers may include some who lost jobs after South Korea halted trade with North Korea following a naval conflict in 2010.

    http://sp.m.timesofindia.com/world/...to-beat-rising-wages/articleshow/17302071.cms
     
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  3. amoy

    amoy Senior Member Senior Member

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    The total number of such workers is said to reach 120,000 within 2012, needless to mention illegal immigrants. Many of them actually work for N.K. invested restaurants. There's a Korean community of millions mainly in NE China so that Koreans can easily mingle with locals.

    South Korea's investment in Kaesong of North Korea only pays $63.8 min. wage per month (already incl. a 5% YoY increase)
     
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  4. cir

    cir Senior Member Senior Member

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    True.

    A friend of mine owns a business in the frontier town Hunchun and has hired 70 North Koreans, each paid 200 US dollars a month.

    They are well-disciplined and efficient workers.

    Hunchun,nestled in a remote area bordering Russia and North Korea and with inland harbours connected to the Sea of Japan via the Tumen River, is being developed into a logistic hub for Northeast China and will hire more and more North Koreans in the years to come.
     
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  5. trackwhack

    trackwhack Tihar Jail Banned

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    very nice developments indeed.
     
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  6. drkrn

    drkrn Senior Member Senior Member

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    actually its a win-win situation for both countries.even this helps nk economy to grow.

    why only women are allowed into china?any chances of diverting them into sex industry.what if they settle in china leaving nk forever?
     
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  7. W.G.Ewald

    W.G.Ewald Defence Professionals/ DFI member of 2 Defence Professionals

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    I had no idea that trade existed at any time.
     
  8. Ray

    Ray The Chairman Defence Professionals Moderator

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    An innovative way to beat the cost of manufacture since the North Koreans will come cheap.

    What would be the social effect on China is the question.
     
  9. Ray

    Ray The Chairman Defence Professionals Moderator

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    A win win for North Korea.
     
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  10. amoy

    amoy Senior Member Senior Member

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    Actually S. Korea investors opened a industrial zone at the bordering Kaesong in N. Korea. S.K. firms paid $63.8 min. wage per month only.

    When President Lee Myong Bak came to power he abolished "Sunshine" strategy his predecessors adopted. Instead he anticipated N.Korea could have toppled in famines/embargo/power transition so that South could integrate North. He even proposed "reunification tax" http://www.nytimes.com/2010/08/16/world/asia/16korea.html Hence bilateral relationship got more confrontational, and turbulent.

    That Kaesong ind. zone could be in a stalemate now North Korea Cancels All Kaesong Contracts | ROK Drop
     
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