China slave scandal leaves bad taste
The China slave scandal has been reigning the papers over the last week.
It all started with parents reporting the abduction of their kids and complaining about how some provincial law enforcement officials aren't doing anything to help.
It turns out that many of those taken from their parents were sold to work as slaves.
According to AFP, more than 450 people have been rescued “from brick yards and coal mines across two provinces in central and northern China that were run with exceptional ruthlessness.”
At least one man was beaten to death, with the rest badly hurt from the drastic conditions they work and live in.
This is just one of the few “embarassing” labour revelations last week, “including reports that children were being used to make merchandise for the 2008 Beijing Olympics.”
President Hu Jintao has ordered an investigation into the increasing cases and police in Henan and Shanxi provinces (where most of the slave labourers were rescued from) have acted “with a rare speed and thoroughness indicating high-level government concern,” according to Reuters.
If this issue isn't curbed as soon as possible, all the build-up in anticipation of the Beijing Olympics next year will be in vain.
So how will this affect our local stock market, you say?
For starters, we have many Singapore-listed mainland Chinese companies, which factories are located in the rural parts of the country.
If they are found to have been involved in these human trafficking activities, they will be in such trouble they may even lose their listing.
Second, the reports on how children were being used to make merchandise for the Beijing Olympics may very well lead to human rights protests in other parts of the world, and lead to the boycotting of the event.
All the build-up of infrastructure just waiting to be utilized by tourists in 2008 would then be in vain.
Of course, the country would still be better off with the new goods.
As for other SGX-listed companies, their businesses in China related to the Olympics would also be thrown into jeopardy.
And if this scandal could butterfly effect its way onto our shores like that, what more of the Chinese stock market?
So China had better be getting its act together quick.
Otherwise, it's probably going to pull the region down with it.
Serene Lim
ArchivesIt all started with parents reporting the abduction of their kids and complaining about how some provincial law enforcement officials aren't doing anything to help.
It turns out that many of those taken from their parents were sold to work as slaves.
According to AFP, more than 450 people have been rescued “from brick yards and coal mines across two provinces in central and northern China that were run with exceptional ruthlessness.”
At least one man was beaten to death, with the rest badly hurt from the drastic conditions they work and live in.
This is just one of the few “embarassing” labour revelations last week, “including reports that children were being used to make merchandise for the 2008 Beijing Olympics.”
President Hu Jintao has ordered an investigation into the increasing cases and police in Henan and Shanxi provinces (where most of the slave labourers were rescued from) have acted “with a rare speed and thoroughness indicating high-level government concern,” according to Reuters.
If this issue isn't curbed as soon as possible, all the build-up in anticipation of the Beijing Olympics next year will be in vain.
So how will this affect our local stock market, you say?
For starters, we have many Singapore-listed mainland Chinese companies, which factories are located in the rural parts of the country.
If they are found to have been involved in these human trafficking activities, they will be in such trouble they may even lose their listing.
Second, the reports on how children were being used to make merchandise for the Beijing Olympics may very well lead to human rights protests in other parts of the world, and lead to the boycotting of the event.
All the build-up of infrastructure just waiting to be utilized by tourists in 2008 would then be in vain.
Of course, the country would still be better off with the new goods.
As for other SGX-listed companies, their businesses in China related to the Olympics would also be thrown into jeopardy.
And if this scandal could butterfly effect its way onto our shores like that, what more of the Chinese stock market?
So China had better be getting its act together quick.
Otherwise, it's probably going to pull the region down with it.
Serene Lim
Labels: beijing olympics, china slave scandal, singapore stocks
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