THE LABOR WILL BE JUST AS CHEAP IN FREER NATIONS:

A Sharp Debate Erupts in China Over Ideologies (JOSEPH KAHN, 3/12/06, NY Times)

For the first time in perhaps a decade, the National People's Congress, the Communist Party-run legislature now convened in its annual two-week session, is consumed with an ideological debate over socialism and capitalism that many assumed had been buried by China's long streak of fast economic growth.

The controversy has forced the government to shelve a draft law to protect property rights that had been expected to win pro forma passage and highlighted the resurgent influence of a small but vocal group of socialist-leaning scholars and policy advisers. These old-style leftist thinkers have used China's rising income gap and increasing social unrest to raise doubts about what they see as the country's headlong pursuit of private wealth and market-driven economic development.

The roots of the current debate can be traced to a biting critique of the property rights law that circulated on the Internet last summer. The critique's author, Gong Xiantian, a professor at Beijing University Law School, accused the legal experts who wrote the draft of "copying capitalist civil law like slaves," and offering equal protection to "a rich man's car and a beggar man's stick." Most of all, he protested that the proposed law did not state that "socialist property is inviolable," a once sacred legal concept in China.

Those who dismissed his attack as a throwback to an earlier era underestimated the continued appeal of socialist ideas in a country where glaring disparities between rich and poor, rampant corruption, labor abuses and land seizures offer daily reminders of how far China has strayed from its official ideology.

Business Can Change China (Jim Hoagland, March 12, 2006, Washington Post)

Repression pays. Until that reality is acknowledged by American companies operating in China, they will have little influence over social and political change in the Middle Kingdom or even over their own operations there.

That holds true for members of Congress who are abruptly chastising China's Leninist rulers for cheating on trade and currency pegs, and for an ambivalent Bush White House, which will host China's president next month with a mix of verbal bouquets and velvet brickbats -- without ever mentioning the driving force in China's astonishing 15-year economic rise.

That force is a low-wage, unfair labor system held in place by Communist Party control and military might. Take away that system and replace it with one that has collective bargaining and freely chosen union representatives, and all the rest will change, dramatically and for the better.

But business will pick up and move on to the next sweatshop nation.

Posted by Orrin Judd at March 12, 2006 7:29 AM