CHINA RULES.

CHINA RULES. China's "sweeping" new labor law is yet one more surprising ingredient -- cardamom? -- in the globalization stir-fry. Since the text of the law hasn't been released yet, it's hard to tell how it will actually affect Chinese workers. China's government has made some highly visible steps in the right direction of late, including emancipating brick kiln slave laborers. Here's how foreign business reacted to the new legislation:

Companies argued that the rules would substantially increase labor costs and reduce flexibility, and some foreign businesses warned that they would have little choice but to move their operations out of China if the provisions were enacted unchanged.

Right! They'll just pull up stakes and haul on over to one of those other rapidly expanding East Asian mega-economies. Unfortunately, it's hard to imagine that China's state union, the only game in town, will put too much pressure on companies. As of now, it doesn't even permit strikes.

--Matt Sledge