Outlook on Light Manufacturing in China: August 2015

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The below is a sample of Cascade Asia Advisor’s monthly report on light manufacturing across emerging Asia, available for purchase through the Asia Briefing bookstore. The report is a 4-5 page executive-ready assessment and outlook designed to help companies anticipate labor risks and dynamics across key manufacturing countries in Asia. Countries of coverage include Cambodia, China, Indonesia and Vietnam.


With most provinces in southern China being hit by a heat wave that has lasted for several weeks, factories are now facing higher risks of fire accidents. This is further compounded by high absentee rates due to deteriorated health conditions like heatstroke, an occupational injury in China eligible for compensation. Enhanced protective measures need to be adopted at workplaces to prevent heat-related work safety issues and subsequent legal disputes.

The requirement for factories to disburse a monthly High Temperature Subsidy will continue through September for workers operating in excessively hot conditions specified in national and provincial regulations. Amounts differ in each province but range from 150 Yuan to 200 yuan per month.

Guangdong: The Shenzhen government has recently pledged to crackdown on workplace safety violators. Factories are likely to see more rigorous implementation of the revised Work Safety Law that would lead to strict inspections and a higher possibility of prosecutions when accidents occur.

Zhejiang: Following the collapse of a footwear factory in Wenling last month factories in Zhejiang should anticipate unannounced building safety inspections.

Fujian: The monthly minimum wages in Fujian Province have been increased by 180 yuan starting from July 1st, ranging from 1130 to 1500 yuan depending on localities.


Cascade Asia Advisors is a boutique advisory firm focused on Southeast Asia. They help businesses anticipate risk and make better decisions using forward-looking, localized intelligence. For information about developments mentioned in this report, please contact them at info@cascadeasia.com.

Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email china@dezshira.com or visit www.dezshira.com.

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