China has passed its much anticipated new labor contract law, granting greater rights to workers, the New York Times reported. The new law, which will go into effect next year, requires employers to give workers written contracts, restricts the use of temporary labor, and makes firing workers more difficult. It also allows for collective bargaining for wages and benefits. Foreign investors have complained that the law makes it more difficult to do business in China, and that it erodes the mainland's low-cost labor advantage. Nevertheless, the government has pursued the law as the latest step in its campaign for a "harmonious society." The labor law's passage caps the latest session of China's highest lawmaking body, the Standing Committee of the National People's Congress.
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