China's largest trade union body stated that the country's "investment environment" would not be weakened by a sweeping new labor law passed by legistlature last week. The statement came mid concerns the new law, which sets standards for working conditions, wages and other matters, was biased toward employees, and would make China less attractive to foreign companies and investors. However, Liu Jichen, the top lawyer for the All-China Federation of Trade Unions, argued that the law benefits employers as well, since it also sets softer standards under which companies can release employees and allows companies to sign workers to non-competition contracts to ensure employees don't leave to join competitors.
See "Labor law 'will not hurt investment environment'", Guan Xiaofeng, China Daily, July 2, 2007