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EUPA-China
1
EUPA-China
Rennis Wendy
School of Business, Liberty University
Prof. Angela Peterson
February,8,2023
Author Note
Rennis Wendy
I have no known conflict of interest to disclose. Correspondence concerning this article should be addressed to
Rennis Wendy. Email: rwendy@liberty.com
EUPA-China
2
Today “Made in China” has become the most common words in the World. Lu, (2015) in
his YouTube Video talking about the EUPA, a large factory in China with about 17,000 workers with various production lines. He showcases the part of China that tourists don’t see. It is essential to understand despite such large factories enhancing China’s ability to grow economically, they also present challenges and risks. A high-capacity factory like this may presents certain pros which include the following:
Enhances Economic Growth: Such huge factories give China a global competitive edge. s
a result of the factories producing a variety of electronics at huge quantities, China can set competitive prices for these products when exported to worldwide markets. The efficiency of these factories attracts foreign investment with innovators around the world bringing prototypes to be manufactured. This has enabled China to strengthen its position in the World’s economy. Encourages Innovation and Technology Development: Industries like EUPA promote innovation, with example of Zhi-Rong Pan EUPA’s then Vice President of innovation sending his employees abroad to study the world market, conduct research, and advise on the route of innovation, fostering initiatives like this drives progress in various sectors and contributes to China's long-term economic development. Continuous innovation by these large factories have diversified China’s economy with them delving into sectors like technology, automative, and renewable energy enhancing stability in the economy.
Employment Opportunities: Factories like EUPA provide millions of jobs to individuals across China with individuals leaving their hometown to seek jobs, the on-job training offered to workers at the factory encourages transfer of knowledge and skills. The multiple foreign firms
EUPA-China
3
seeking to produce their goods in China also facilitate training on the products intended for production.
Despite the large factories having multiple benefits, it also presents multiple challenges which include the following:
Environmental Degradation, big factories are often associated with pollution which presents significant risks to public health, ecological systems, and overall environment. Hoque et
al. (2018). discusses in his study that ecological imbalances due to Industrialization are often not taken seriously because of the economic benefits it fosters. This study focuses on Bangladesh, explaining it is the most vulnerable developing country to climate change, however, industrialization and seaport based economic activities have contributed 21% of the national GDP thus its impact often ignored.
Labor Exploitation: These aspects have been present in China's large factories in multiple
ways, they have been criticized for income inequality, concerns of human right violations like child labor, long working hours with low wages. In EUPA at the time of the video, workers are paid between $90-$300 per week for 40 hours a week. This averages the pay of a factory workers
at $4.88 per hour despite making the factories millions of dollars a year. These low wages and long working hours have increased the number of suicide cases due to depression as reported by Chan, (2013).
China's large factories may enhance economic growth, create immerse employment opportunities, and foster innovation, it also presents various challenges if not addressed may have catastrophic consequences not only to its nation but globally.
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