How old-school factories stay alive in China's south

Shiling, China

SQUEEZED by high costs and unpredictable demand, some factories in southern China's manufacturing heartland are turning to a new strategy to survive: hiring workers by the day.

It is a far cry from Beijing's vision of a slick, hi-tech manufacturing future of computers and chip makers. On a warm morning in the southern town of Shiling, dozens of workers gather on a city street to haggle for a day of work making bags for US$20 to US$30.