Why China’s low-cost business model resists reform

On July 9, a fire burned through a shoe factory in Jinjiang, Fujian province, killing at least 28 people. The accident signals a larger problem: firms operating under financial pressure often cut costs by compromising safety. China’s low-cost business model needs reform, but why has change been so difficult? The plant that burned employed hundreds of workers, yet company filings for 2025 indicate that only a handful of them were enrolled in pension and medical insurance plans. A fire-safety...