China still favorite destination: Amcham

Posted July 25th, 2008 by Scott Welsh

MEMBERS of the American Chamber of Commerce in South China (Amcham) said that China is still their favorite investment destination despite a long list of concerns over China’s economy ranging from higher labor costs, rising raw material prices, a strengthening yuan and power shortages.

A forum, co-organized by Amcham and the Shenzhen Municipal Labor and Social Security Bureau (SMLSSB), was held Wednesday aimed at providing clarifications of some unclear issues of the new labor law, which came into effect in January.

The new law, which has made it harder for employers to avoid paying employees’ benefits, has triggered a number of disputes in the country and a majority of complaints are related to overtime payments and breach of contracts, which could increase employers’ costs, Qing Xiaolan, section chief with the SMLSSB, told the forum.