Table of Contents

Executive Summary ………………………………..….………….…….……………….. 4
Institutions ………….……………………………….….…….……….………….……... 6
Socio-cultural Forces …………..…………..…………..……………….……………… 10
Labor Standards in Germany …………………………………………………………... 12
Labor Standards in China ………………………………………………………...…..... 19
Comparative Analysis ………...…………………........…………….……..……....…… 25
Conclusion ………………………......……………………………….……....………… 29
References …………………………...………..……………………………….……….. 31
Appendix A …………………………...………..……………………………...……….. 35
Appendix B …………………………...………..……………………………...……….. 36
Appendix C …………………………...………..……………………………...……….. 37
Appendix D …………………………...………..……………………………...……….. 38
Appendix E …………………………...………..……………………………...……….. 39

Executive Summary

As a result of systemic changes in the economy over the last two decades, the world of work has radically changed in eastern European and Asian countries. Transition reforms have led to rapid structural shifts in the economy: China has become a focal point for much of the insecurity that globalization has produced: for the past two decades China has experienced explosive economic growth that has attracted jobs and capital from around the world (Feng, 2007). No other industrializing country has ever attracted jobs at both the high and low ends of the production chain. From basic level assembly work to the upper tiers of industry and services, China is setting the global norm for working standards around the world. Workers in rich and poor countries alike feel the effect of China as global corporations move to China to lower labor costs and use the threat of this mobility as a lever to drive down wages and working conditions for workers in other countries such as Germany, examined in this paper. China continues to welcome foreign firms with open arms- the Chinese government provides a