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corporations, joint ventures, and other companies in China’s growing private sector. By the end of 2002, manufacturing employment in urban State-owned enterprises had dropped steeply, to 10 million, and in urban collective units had declined to only 3 million. (See table 1.)

There is considerable overlap between the two categories making up the urban manufacturing classification: manufacturing employment in urban units and urban manufacturing staff and workers (zhigong). Urban manufacturing staff and workers (all of whom have been on-post workers since 1998) are included by definition in the category of manufacturing employment in urban units.7 In every year for which both series are available, namely, 1994-2002, the category of manufacturing employment in urban units is slightly (0.5-0.7 million) larger than that of urban manufacturing staff and workers. (See table 1.) The residual half a million to three-quarters of a million workers in urban manufacturing units include urban reemployed former retirees and foreign employees of manufacturing units, as well as employees from Hong Kong, Macao, and Taiwan. 8

For example, at yearend 2002, China recorded 29.807 million employed in urban manufacturing units and 29.069 million urban manufacturing staff and workers, the difference between the two categories being approximately 738,000. (See table 1 and chart 1.9) This residual is accounted for by the category of other urban manufacturing employment, with 738,885 reported for yearend 2002, of whom 150,470 were reemployed and continuing workers of retirement age.10 Who, then, were the remaining 588,000 employees in urban manufacturing units? The Labor Ministry clearly has collected data on how many of them are foreign personnel, but China Labor Statistical Yearbook 2003 does not report this information. (The volume does report that, in all sectors of the economy, only 50,045 out of all those in the category of other urban employment, totaling 4.28 million, were “Hong Kong, Macao, Taiwan & Foreign Personnel” at yearend 2002. This small number implies that the great majority of the hundreds of thousands of foreign experts, technical and administrative workers, teachers, managers, and entrepreneurs actually working in China have been classified (or misclassified) as working in rural areas or are not recorded as working at all.) Therefore, only a small proportion of the 0.59 million workers classified as other urban manufacturing employees at yearend 2002 could be recorded in the statistics as foreign personnel. The rest of the “other” urban manufacturing employees work for urban manufacturing enterprises, but are in statistical categories such as employees lent from another company, workers holding a second job, and those working without a contract because they have not completed employment formalities. 11

The larger urban category of manufacturing employment in urban units included 29.8 million of the 38.0 million total for yearend 2002 urban manufacturing employment. (See table 1 and chart 1.) The other 8.2 million were in relatively small privately owned and privately operated enterprises (siying qiye) or were self-employed individual or family enterprises (geti jiuye) in urban manufacturing.12 China’s urban (chengzhen) manufacturing workforce in 2002 included 2.6 million workers in getihu (individual and household enterprises) and 5.6 million working in privately owned siying qiye. In the latter category, 0.8 million workers were categorized as “investors” in their own companies, and 4.8 million were called hired laborers or hired hands. 13


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