Abstract
This paper will focus on how labour transformation impacts labour intensive sector (OEM) in China. We will examine the phenomenon occur during the transformations in China currently; by using Lewis turning point as a basic theory to reflect a few contradictions that raise from other social aspects, mind set of young generation (generation born in late 80s & early 90s), observe the changes and developments in its demographic and politic regime, especially those ones listed in the next 12th five years plan (2011~2015), how will this impact China’s economy reform via manufacturing sector. We will use case study of Topkey Corporation whom is located in Xiamen, China, classified as a labour intensive sector (OEM) for aircraft seating interior parts and commodities. Since 2008, its production site in Xiamen has been struggled to build up a stable labour force. Now, with the high demand in aviation industry; especially in Asian region, how the company should act to overcome current labour transformation in China and continue to meet market’s demand. At last, we will suggest possible responses and strategic plans that the company can implement and survive from this inevitable fact that will always be expected in any developing nation.