China's entrenched low-cost business model faces significant challenges in reform due to structural incentives that prioritize economic growth and job creation over worker protections. Local governments, reliant on manufacturing for revenue and employment, often hesitate to strictly enforce labor laws, as seen in cases where blocked exits and inadequate insurance coverage persist despite safety concerns. This systemic issue, embedded in fiscal policies at both local and central levels, creates a self-perpetuating cycle that discourages necessary changes and perpetuates the conditions that stifle reform efforts. AI
RANK_REASON The item is an opinion piece discussing structural economic and policy issues within China.
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