China: Unionizing Foreign Firms to Redirect Investment

The All-China Federation of Trade Unions (ACFTU) quietly announced in March that it was stepping up efforts to unionize foreign firms. On July 5, ACFTU President Wang Zhaoguo proposed an amendment to China's Trade Union Law requiring foreign-funded companies to establish an ACFTU trade union. The amendment, which will likely pass by the end of the year, will herald another stage in China's drive to redirect its economy inland and rein in investment by increasing oversight of foreign companies.