The Ministry of
Commerce and the State Administration of Industry and Commerce
yesterday published an administrative regulation governing
organizations that export labor. The regulation, which will go into
effect in 30 days, sets more stringent conditions for companies
dealing in the business of providing workers abroad.
The regulation requires such businesses to have a minimum
registered capital of 5 million yuan (US$604,000). Its debt/asset
ratio should not be greater than 50 percent and the company must
have fixed office space of at least 300 square meters.
The company must also obtain ISO9000 certification,
authentication for management and employ at least five
professionals, including those responsible for training and legal
affairs.
The old regulation focused more on registered capital and trade
volume.
Companies that are already operating have one year to comply
with the new requirements.
The Ministry of Commerce will administer warnings and assess
monetary penalties for companies that violate the regulation.
Serious infractions may lead to the criminal courts.
The ministry will also regularly publish a list of companies
that violate the regulation.
Li Wei, of the University of
International Business and Economics, said the stricter
regulations should improve safety and management in the labor
export industry, particularly in light of the recent security
concerns about workers abroad. In the past two months, 14 Chinese
workers have been killed and 13 injured in terrorist attacks.
There are now about 1,400 Chinese firms licensed to contract and
export labor abroad.
After two decades of development, China’s labor export industry
has expanded to more than 180 countries and China has become one of
the world’s top 10 countries for overseas contracts.
The China International Contractors' Association indicates that
there are more than 500,000 laborers working abroad. They are
employed in industries ranging from construction and transport to
domestic help, medical services, mining and textiles.
In China, there are two main legal avenues for exporting labor.
The first is project based, a hangover from aid projects in the
1970s, when state-owned companies would send workers to other
developing countries. The second channel is via companies
specializing in sending people abroad for work, usually in
construction but also in areas such as manufacturing and
agriculture.
The chief destinations are East and Southeast Asia, North
Africa, North America, the Persian Gulf and Europe, Li said.
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(China Daily August 3, 2004)