Since China joined the World Trade Organization (WTO) in 2001, its already cheap labor force has been exposed to global market competition. The country’s domestic employment situation, particularly with respect to guarantees of workers’ rights and interests, has likewise come under pressure. In the years from 1999 to 2002, recorded urban unemployment rates regularly increased, from 3.1 percent in 1999 and 2000, to 3.6 percent and 4.0 percent in 2001 and 2002, respectively. At the end of March 2003, they rose again to 4.1 percent. The number of labor disputes received by labor dispute arbitration committees at every level reached 184,000 by 2002, with the number of participating workers climbing to 610,000, numbers that were 19.1 percent and 30.2 percent higher, respectively, than the previous year. In short, while China’s participation in the WTO propelled economic development, trade system reform, adjustments to the economic structure, and privatization of enterprise, it also resulted in an uneasy state of affairs for labor and management relations. For instance, in October 2004, at Shenzhen’s Hong Kong-owned Meizhi Haiyan Electronics Factory, four thousand people went on strike and blockaded the roads to protest low wages.

In November 2004, amid concerns about deteriorating working conditions at foreign-funded enterprises, the All China Federation of Trade Unions (ACFTU) confronted Chinese locations of WalMart, which is well known for obstructing the establishment of trade unions. The ACFTU declared: “They [WalMart] are in violation of the Trade Union Law, and we are prepared to sue them.” WalMart yielded, conceding that, “[i]f workers ask to establish a trade union, we will respect that request, [and] fulfill our duties and responsibilities under the Trade Union Law.” This landmark event demonstrated not only the ACFTU’s power in a direct confrontation, but also its opposition to the intensifying WTO-driven competition in the Chinese labor market. Thus far, the power of trade unions in general and the ACFTU in particular has been felt primarily at foreign-funded enterprises. But what about locally owned and operated enterprises?

In order to understand the actual level of autonomy that trade unions enjoy at the grassroots level, the chairmen of 1,811 trade unions in major cities and provinces—including Liaoning, Beijing, Shanghai, Zhejiang, Guangdong, Gansu, Guizhou, and Henan—completed a questionnaire survey. The Chinese Institute of Industrial Relations (Beijing) facilitated the survey, which was carried out between March 2004 and June 2006. The major findings confirm that, although the independence of trade unions at foreign-funded enterprises has increased, the unions’ autonomy at local level enterprises remains fairly low. According to survey results, China continues to be a predominantly state-corporatist system, between the Chinese Communist Party (CCP) on the one hand and workers and state-owned/state-held enterprises on the other.

The survey revealed other data about the leadership of China’s state-owned/state-held enterprises. Most notably, the Party organization was still appointing 24.5 percent of the chairmen of these work units. Even in cases where chairmen assumed their posts through election or open selective examinations, 35.1 percent of them participated in the election or examinations after the Party recommended them to the work unit in question (see figure 1). The ratio of chairmen who are CCP members to those who serve concurrently as a “secretary,” “vice-secretary,” or member of the Party committee at a corresponding level reached high percentages, of 90.0 percent and 46.4 percent, respectively. In addition, 72.1 percent of the chairmen of state-owned/state-held enterprises answered in the survey that their union committee had established a Party group or Party branch at their workplace. These data clearly indicate that, unlike their counterparts at foreign-funded companies, the trade unions of state-owned/state-held enterprises not only lack autonomy, and but that their management also often remains subject to Party control.

Shorenstein APARC has received a grant from the Academy of Korean Studies in Seoul which enables the center to publish a series of books on Korea's democratization and social change, under the series title: Korean Democracy: From Birth to Maturity.

Under this three-year grant, the center will publish a series of studies which focus on: 1) the role of social movements in Korean democratization, 2) comparative relevance of the Korean experiences, and 3) impact of democratization on social and political changes.

For the first study the center will build upon its on-going research projects, particularly the Stanford Korean Democracy Project. This project seeks to understand the emergence and evolution of social movements and their role in Korean democratization. During the authoritarian years, when former military generals ruled Korea, various social groups participated in the movement to restore democracy and ensure human rights. Their activism was instrumental to democratic reforms that took place in the summer of 1987 and they continued to play an important role even after democratic transition.

The Stanford University Korea Democracy Project traces the dynamic of this social movement from 1970 to 1993. Based on sourcebooks obtained from the Korea Democracy Foundation, project researchers led by Dr. Gi-Wook Shin have created novel quantitative data sets. Specifically, they have coded the main features of nearly five thousand protest and repression events from 1970 to 1993, using a comprehensive coding scheme developed expressly for this purpose. In addition, researchers have coded an organizational directory that includes characteristics associated with 387 social movement organizations active during this same period. While there are many informative studies of particular movements - such as the Kwangju uprising - in Korea's democracy movement, the Stanford Korea Democracy Project aims to provide a systematic overview of the movement as it developed through the most authoritarian period (1972-84), democratic transition (1987), and the democratic period (post-1987). Two books are expected from this project.

The second study will address the comparative relevance of Korean experiences. The comparison between Korea and other non-Western societies raises many questions about the conditions necessary for democratic transformation, including the role of culture, national identity, social organization, labor politics, and economic modernization. There is also a need to understand how Korea's particular example provides lessons regarding effective democracy promotion. The center plans to host a conference on labor politics in Korean democracy that is designed to develop a theoretical challenge to the Euro-centric theoretical paradigm in labor studies and draw implications for other non-Western societies. In advancing comparative perspectives, the researchers will work closely with Stanford's Center on Democracy, Development, and the Rule of Law (CDDRL). The coordinator of their Democracy Program, Larry Diamond, has already published two books that looked at Korea's experience in this comparative framework.

Finally, the third study will assess the impact of democratization on broader social and political changes in South Korea. This will include not only domestic issues but also Korea's relations with other nations. The latter is particularly relevant since Korean democratization took place in the post-cold war era. As such, democratization has provoked Koreans to rethink their views of the North, US-ROK relations and Korea's role in the world. Clearly democratic change has significantly altered the environment in which Korean government policy is made, broadening the public policy dialogue to include non-governmental actors, new media, and politicians who are sensitive to the shifts of public opinion. Researchers at the center will explore this dynamic in supporting the research and publication of a new book on South Korea's democratization and the anti-American wave of 1999-2002, authored by a former senior American official, David Straub, currently a 2007-2008 Pantech Research Fellow at the Center.