“A Siege From Within: On Chinese SOEs’ Operational Structure – Case Papua New Guinea” 3 May 2024

Since the implementation of the Belt and Road Initiative in 2013, Chinese investment into Papua New Guinea (PNG) has burgeoned...Overshadowed by the prominence of the geopolitical and economic relation between the two governments were the living conditions of Chinese guest workers in Papua New Guinea and their complicated relationships with the local communities...

This report first provides a brief on the overall labor rights social conditions in PNG as well as the background of economic partnerships between PNG and China...Findings from these case studies show that the organizational structure of Chinese SOEs provides a fertile ground for corruption and the lack of accountability, both issues that could breed further labor rights abuses and exploitations...

China Labor Watch synthesized the following major forms of labor rights infringement experienced by Chinese guest workers in Papua New Guinea:

1. Autocratic and abusive management in Chinese State-owned Enterprises
2. Prolonged working hours
3. Restriction of personal freedom
4. Coercion and physical violence in the hands of private business owners against unprotected workers
5. Ethnic and economic conflicts with the native population

Some of the institutional issues that structured Chinese workers’ experiences include:

1. Cultural segregation from the local community
2. Lack of legal and diplomatic support from the Chinese Embassy
3. Restrictions of freedom and exacerbation of existing abuses during the COVID pandemic
4. Corruption and nepotism in the leadership of Chinese State-owned Enterprises
5. Corruption in the PNG police and state authorities