In May, factories in various industries in mainland China have been shutting down and there has been a surge in unpaid wages, affecting sectors such as electric vehicles, electronics, toy manufacturing, solar engineering, amusement parks, and Indonesian state-owned construction projects. A former state-owned enterprise employee in Beijing expressed disappointment, saying “the national economy is not doing well, and Beijing is no exception.”
On May 13, the National Corporate Bankruptcy and Reorganization Cases Information Network of China reported a new bankruptcy case involving Nezha Automobile’s parent company, Hezhong New Energy Automobile Co., Ltd. According to Financial World on May 13, it was reported that Nezha Automobile had begun dissolving its research and development team on March 18.
On April 14, several Chinese media outlets reported that some Nezha Automobile dealers had been unable to receive the cars they had paid for, leading to protests. There were also reports of Nezha’s headquarters being surrounded by suppliers.
An employee at Nezha Automobile revealed to the Epoch Times that salary arrears had started since September of the previous year, with salaries in September and October being only half of the original amount. In November, the salaries dropped further, and later on, the company started paying only 2,690 yuan, the minimum wage in Shanghai.
“The company’s operations have been problematic from our perspective,” the employee disclosed, mentioning that the wage cuts were all unilaterally imposed by the company. At the end of April, the company hired a third-party lawyer to call those on the resignation list and force them to either sign a resignation agreement or face unilateral termination of employment contracts.
Employees from various factories in Guangdong, including Hui Zhou Yuan Gao Electronics and Shenzhen Willy Star Toys Co., faced similar issues of sudden closures and unpaid wages. These incidents have raised concerns about the economic conditions and employment instability, with workers resorting to protests and demonstrations to demand their rights.
Amidst these challenges, workers from different sectors and regions are struggling to cope with the impact of factory closures and withheld wages. Reports of similar issues in the solar panel industry in Shandong and the closure of the Kallo Star Planet Park in Beijing have further highlighted the widespread economic difficulties faced by workers across the country.
These incidents reflect the broader economic challenges and social repercussions of the current situation in China. Workers continue to voice their grievances, demanding fair treatment and resolution of their unpaid wage issues. The impact of these factory closures and labor disputes extends beyond individual workers, signaling broader systemic issues within the Chinese economy.