Labor unrest surges in China

Business & Technology

Top business and technology news for February 2, 2017. Part of the daily SupChina news roundup "Unrest along the New Silk Road."

  • China labor unrest spreads to ‘new economy’ couriers and sales staff at ecommerce companies / Financial Times (paywall)
    2016 saw a record high of 2,663 labor strikes and protests in China. As fewer young people are willing to join the low-wage, migrant workforce which the country’s manufacturing, construction, and booming new economy have heavily relied upon, China’s labor supply is shrinking significantly. The imbalance has led to a series of problems such as rising wages, increasing salary arrears, and threats to old workers’ social insurance payments that, together, have forced many shops and factories to close.
  • Citic, Baidu get green light to open online bank / Caixin
    A partnership between Chinese internet giant Baidu and state-owned Citic Bank to launch an online bank has received regulatory approval from the Chinese banking authority. In the deal, Citic Bank will hold a 70 percent stake in Baixin Bank, while Fujian Baidu Bo Rui Netcom Science and Technology, a subsidiary of Baidu, will own the remaining 30 percent. The move is Baidu’s attempt to stake a claim to the online banking territory that is currently dominated by its main competitors, Tencent and Alibaba.