"This paper explores changing industrial relations in China by reviewing the existing literature and analysing a recent industrial relations survey conducted by the Shanghai Municipal Trade Union Council. During the transition from a planned economy to a quasi-market one, a harmonic relationship has been replaced by widespread labour disputes between enterprise management and workers. The growing violations of workers? rights are mainly due to diversity of ownership, a lack of regulations for human resources management, extended management power over employment relations, inadequate social security, surplus labour supply and weak unions. In order to achieve social stability the Chinese government is keen to establish a system of protection of workers? rights. The current system is centred on labour arbitration that is accompanied by tripartite negotiation, collective (regional) agreements and labour courts. Unions play no more than a role of mediation, organising meetings in tripartite negotiation. Consequently, local labour bureaux or (government) industry bureaux have a strong tendency to interfere in and influence industrial relations. ?Rival? regional unions or workers? congresses set up by the union council to represent workers in their regions are emerging. However, they have not yet played an active role in solving labour disputes. Strengthening labour arbitration is the key to developing labour dispute management strategies in China given that independent unions are not possible in the near future."

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