The impact of SA8000 factory inspection on Chinas exports

SA8000, as a factory inspection system in terms of social responsibility, not only clarifies the social responsibility norms, but also puts forward the corresponding management system requirements. FSC professional certification combines social responsibility and management to a certain extent, which can regulate the ethical behavior of organizations, especially enterprises, and help improve labor conditions and ensure labor rights.

　　Although the purpose of SA8000 is good, today when tariffs and general non-tariff barriers are constantly being reduced, it is very easy to be used by trade protectionists and become a powerful tool to restrict the export of labor-intensive products in developing countries. In fact, trade protectionists have joined forces with human rights organizations to impose comprehensive restrictions on the export of textiles, clothing, footwear, toys and leather products, small household appliances and other industries in developing countries in the name of SA8000. For example, some foreign human rights agencies use this to put pressure on importers to require them to import products produced by companies that have obtained SA8000 factory inspections; and some social groups require social anti-dumping duties to be levied on companies that fail to meet the requirements of labor standards.

As a major producer of labor-intensive products such as textiles, clothing, toys, and footwear, my country has a low level of economic development. Although the protection of labor has begun, it started late and is quite different from developed countries. For most enterprises, once If required to implement SA8000, the original competitive advantage will be greatly reduced or no longer exist.

SA8000 has its rationale, but under my country's current economic development level, SA8000 has a greater negative impact on my country's trade development.

　　1. Impact on enterprises: In order to establish a good image among the public and maintain sales among consumers who are very concerned about labor standards, enterprises will have to take measures to improve labor conditions and strive for SA8000 factory inspections. This will inevitably consume a lot of time and energy, as well as more management expenses and costs (SA8000 factory inspection generally takes 1 year, the certificate is valid for 3 years, and it is reviewed every 6 months). Although the competitiveness will be reduced from the perspective of cost, it is helpful to the future development of the enterprise from the perspective of obtaining factory inspections to break through foreign barriers.

　　2. Impact on trade: The standards set by SA8000 are difficult for most of our export-related companies to achieve, and it is generally not easy for companies in many developed countries to fully achieve. If a country requires the manufacturers of its imported products to meet the requirements of SA8000, otherwise it is not allowed to import, it will have a great impact on trade.

　　3. Impact on investment: China has been attracting foreign investment at a relatively rapid pace in recent years. In addition to the potential economic development speed and market, cheap labor is also one of the driving forces for foreign investment. If the labor standard is raised to the level stipulated by SA8000, the attractiveness to foreign investment will be reduced, and multinational companies will also worry that their subcontractors will not meet the standards and are reluctant to invest in China, which will have a negative effect on China's attraction of foreign investment.

　　4. Impact on the development of the national economy: my country is a large country with abundant labor resources. The development of labor-intensive industries is of great significance to the growth of my country's national economy and the resolution of employment problems. If the company fully meets the SA8000 standard, the labor advantage may be lost or even become a disadvantage. The lack of resettlement of too many surplus labors will inevitably have a negative impact on the stability and development of my country's national economy.

Although labor standards have not yet been linked to trade, it is difficult to say in what form they will appear in the future. Once the labor standards are formally linked to trade, the impact on my country's export trade will be immeasurable. Therefore, we should always pay attention to the development of this issue and be prepared to deal with it.