At first, this isn't going to sound like a good news story, never mind one of the most inspiring stories in the world today. But trust me: it is. Yan Li spent his life tweaking tiny bolts, on a production line, for the gadgets that make our lives zing and bling. He might have pushed a crucial component of the laptop I am writing this article on, or the mobile phone that will interrupt your reading of it. He was a typical 27-year-old worker at the gigantic Foxconn factory in Shenzen, Southern China, which manufactures i-Pads and Playstations and mobile-phone batteries.

Li was known to the company by his ID number: F3839667. He stood at a whirring line all day, every day, making the same tiny mechanical motion with his wrist, for 20p an hour. According to his family, sometimes his shifts lasted for 24 hours; sometimes they stretched to 35. If he had tried to form a free trade union to change these practices, he would have been imprisoned for 12 years. On the night of 27 May, after yet another marathon-shift, Li dropped dead.

Deaths from overwork are so common in Chinese factories that they have a word for it: guolaosi. China Daily estimates that 600,000 people are killed this way every year, mostly making goods for us. Li had never experienced any health problems, his family says, until he started this work schedule; Foxconn say he died of asthma and his death had nothing to do with them. The night Li died, yet another Foxconn worker committed suicide – the tenth this year.

For two decades now, you and I have shopped until Chinese workers dropped. Business has bragged about the joys of the China Price. They have been less keen for us to see the Human Price. KYE Systems Corp run a typical factory in Donguan in southern mainland China, and one of their biggest clients is Microsoft – so in 2009 the US National Labour Committee sent Chinese investigators undercover there. On the first day a teenage worker whispered to them: "We are like prisoners here."

The staff work and live in giant factory-cities that they almost never leave. Each room sleeps 10 workers, and each dorm houses 5,000. There are no showers; they are given a sponge to clean themselves with. A typical shift begins at 7.45am and ends at 10.55pm. Workers must report to their stations 15 minutes ahead of schedule for a military-style drill: "Everybody, attention! Face left! Face right!" Once they begin, they are strictly forbidden from talking, listening to music, or going to the lavatory. Anybody who breaks this rule is screamed at and made to clean the lavatories as punishment. Then it's back to the dorm.

It's the human equivalent of battery farming. One worker said: "My job is to put rubber pads on the base of each computer mouse ... This is a mind-numbing job. I am basically repeating the same motion over and over for over 12 hours a day." At a nearby Meitai factory, which made keyboards for Microsoft, a worker said: "We're really livestock and shouldn't be called workers." They are even banned from making their own food, or having sex. They live off the gruel and slop they are required to buy from the canteen, except on Fridays, when they are given a small chicken leg and foot "to symbolise their improving life".

Even as their work has propelled China towards being a super-power, these workers got less and less. Wages as a proportion of GDP fell in China every single year from 1983 to 2005.

They can be treated this way because of a very specific kind of politics that has prevailed in China for two decades now. Very rich people are allowed to form into organisations – corporations – to ruthlessly advance their interests, but the rest of the population is forbidden by the secret police from banding together to create organisations to protect theirs. The political practices of Maoism were neatly transferred from communism to corporations: both regard human beings as dispensable instruments only there to serve economic ends.

We'll never know the names of all the people who paid with their limbs, their lungs, or their lives for the goodies in my home and yours. Here's just one: think of him as the Unknown Worker, standing for them all. Liu Pan was a 17-year-old operating a machine that made cards and cardboard that were sold on to big-name Western corporations. When he tried to clear its jammed machinery, he got pulled into it. His sister said: "When we got his body, his whole head was crushed. We couldn't even see his eyes."

So you might be thinking – was it a cruel joke to bill this as a good news story? Not at all. An epic rebellion has now begun in China against this abuse – and it is beginning to succeed. Across 126,000 Chinese factories, workers have refused to live like this any more. Wildcat unions have sprung up, organised by text message, demanding higher wages, a humane work environment, and the right to organise freely. Millions of young workers across the country are blockading their factories and chanting, "There are no human rights here!" and, "We want freedom!" The suicides were a rebellion of despair; this is a rebellion of hope.

Last year, the Chinese dictatorship was so panicked by the widespread uprisings that it prepared an extraordinary step forward. It drafted a new labour law that would allow workers to form and elect their own trade unions. It would plant seeds of democracy across China's workplaces. Western corporations lobbied very hard against it, saying it would create a "negative investment environment" – by which they mean smaller profits. Western governments obediently backed the corporations and opposed freedom and democracy for Chinese workers. So the law was whittled down and democracy stripped out.

It wasn't enough. This year Chinese workers have risen even harder to demand a fair share of the prosperity they create. Now company after company is making massive concessions: pay rises of over 60 per cent are being conceded. Even more crucially, officials in Guandong province, the manufacturing heartland of the country, have announced that they are seriously considering allowing workers to elect their own representatives to carry out collective bargaining after all.

Just like last time, Western corporations and governments are lobbying frantically against this – and to keep the millions of Yan Lis stuck at their assembly lines into the 35th hour.

This isn't a distant struggle: you are at its heart, whether you like it or not. There is an electrical extension cord running from your laptop and mobile and games console to the people like Yan Li and Liu Pan dying to make them. So you have to make a choice. You can passively let the corporations and governments speak for you in trying to beat these people back into semi-servitude – or you can side with the organisations here that support their cry for freedom, like No Sweat, or the TUC's international wing, by donating to them, or volunteering for their campaigns.

Yes, if this struggle succeeds, it will mean that we will have to pay a little more for some products, in exchange for the freedom and the lives of people like Yan Li and Liu Pan. But previous generations have made that choice. After slavery was abolished in 1833, Britain's GDP fell by 10 percent – but they knew that cheap goods and fat profits made from flogging people until they broke were not worth having. Do we?

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