ABSTRACT

When China announced its reform plans in 1978, few could have anticipated the miracu-

lous growth that it will record, especially since 1992. Under the leadership of Mao, China

had built the elements of nationalism for the central government to direct economic

development, which helped a nationally united command economy to stimulate economic

development through the unleashing of market forces, private dwellers and rapid integra-

tion into the global economy. Trade and investment flows brought China closer to the

global economy. From specialization in light manufactured exports, China has undergone

considerable structural change to participate in heavy and knowledge-intensive manufac-

tured goods (Rasiah, Miao, and Xin, 2013). However, some economists have questioned

China’s rapid growth by either claiming that official statistics are not reliable or that it

has largely been propelled by agriculture, land use and labour-intensive industries (Young

2003).1 Even more so China’s labour markets remain under-examined from the stand-

point of whether rapid growth has been reflected in improvements to wages and working

conditions. The latter is important to determine if China is following the high road to

industrialization.