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Other than the local business being hurt by foreign investments and industries, the labor market in China is suffering from major unemployment. According to a paper written by an International Monetary Fund official, "the unemployment problem is in fact likely to worsen over the next few years due to restructuring in the rural and state enterprise sectors" (Prasad 2004, 6 )...
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The type of restructuring that the author notes is what has been mandated upon China by the World Trade Organization. The WTO was too big of a restructure step for China. In a global sense, Chinese involvement in the WTO is great for foreign investment and bad for local investment because "one of the first laws enacted in the reform era was designed to attract and protect investment from overseas" (Yang, 2004 307)...
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