China Model of Setting Industries – UPSC GS3

China mandates employers to provide dormitory accommodation for workers close to factories and other social security benefits.

Factory-provided dormitory accommodation is the prime reason behind slum-free Chinese industrial cities, unlike in India.

Another surprising feature is China’s local governments compete with each other to provide excellent physical infrastructure and guarantee sufficient credit to industrial enterprises through the national development banks, thus implicitly subsidising production costs.

The local governments and party officials, whose objective is employment generation, take up the role of facilitators in the industrial promotion.