1. Introduction
Chinese economics was booming fast like never before, since Chinese economic reform started in 1980. Also, most of people have regarded as China is the one of the biggest manufacture countries in the world. Cheap labor is widely seen as a prerequisite to China’s economic rise and as a major threat to China’s competitors. The low production costs in China have been blamed for countless job losses and plant closures elsewhere in the world as more and more investors flocked to this country. However, the Labor Contract Law of China, that came into effect on January 1, 2008, has been one of the most disputed laws passed in recent years. It was the product of a series of lengthy consultations that took place between the state and social, domestic as well as foreign actors affected by it. Many entrepreneurs see the new law as a threat to their businesses in China.
Chinese new Labor Contract Law is the most significant reform to the law of employment relations in more than a decade. Its final form emerged following highly contentious debates over the terms of earlier drafts- debates involving not only a range of Chinese actors, but also international business lobbyists and labor organizations. The Law was enacted represents a compromise between the competing demands of these many interest groups.
This article briefly surveys the reasons for the enactment of the Labor Contract Law, the polarized drafting process, and the key matters it addresses. The assessment presented is that the Law is, overall, a necessary and beneficial contribution to the regulation of work in China.

2. The Need For the Labor Contract Law
Chinese foundational law regulating the labor market is the Labor Law of 1994.[1] The Labor Law established key norms intended to apply to employment relationships, covering matters such as labor contracts, minimum standards and dispute