Chinese Migrant Workers in the Global Financial Crisis: Government and Stakeholder Interactions

Abstract

The global financial crisis in 2008 has been a great challenge for China’s economy in this interdependent international market. Such economic impact has hastily rippled to the socio-political dimensions. The slowing down of the gross domestic product (GDP) growth rate and the recession of export-dependent industries have directly contributed to the torrent of unemployment, increasing income discrepancy and socio-political instability. However, at the bottom of the hierarchy of victims are still previously deprived, disadvantaged and marginalized groups of people - peasants, migrant workers and the urban unemployed. The Chinese government admits that migrant workers have been hit the hardest during the crisis because of the decline of international market demands and bankruptcy of labour-intensive manufacturers in east coastal areas, the Pearl River delta and the Yangtze River delta. By the end of 2008, many of China’s estimated 225 million migrant workers (BBC Chinese 2009), who had gained the right to leave their land, seek a job and better life in towns and cities since the 1978 reforms, were facing the prospect of returning to the countryside without jobs. About 70 million joined the waves of ‘returning home’ before the Spring Festival in 2009, and although 80 per cent flowed back to the cities after February, there are still 23 million migrant workers struggling with little hope of re-employment, or intention to farm at home (BBC Chinese 2009).