The China puzzle

The "Chinese miracle" has been the biggest economic story for several years now, a tale of a nation rising from the ashes of a Stalinist command economy to become the world's premier trading partner. But China reminds us with distressing regularity that the progress has been selective.

The latest reminders are reports of slave labor in Chinese factories and the discovery that some of the popular Thomas the Tank Engine toys manufactured in China have lead in their paint. Before that, it was the contaminated dog food, the stubborn support of Sudan for its oil, the regular reports of human rights abuses, the huge economic disparities between city and country, the controls on the media.

Why rehearse these faults now? Because governments and companies tend to become so seduced or intimidated by China that they won't hold it to high standards of human rights and business ethics.

Western companies have been so anxious to transfer manufacturing to China's cheap factories that they have been happy to close their eyes to what else goes on over there - just as Google or Yahoo were happy to assist in repressing information to get a toe into the Chinese market, or as Washington and other Western capitals compete in trying to please visiting Chinese leaders. The ultimate source of China's failings is a Communist Party that has jettisoned worn-out Marxist economic theories but clings to its authoritarian rule on all other fronts, creating a dangerously unbalanced behemoth.

This is not an argument against trading with or investing in China. Globalization can be a potent force for democratization. But human rights violations cannot be relegated to untouchable internal affairs. Just as the world has not hesitated, rightly, to lambaste the United States over issues like Guantánamo Bay, it should not be shy about systematic and widespread violations of human rights in China.

China's unreformed political system fosters corruption and an undue focus on short-term economic gains, which will lead to more internal inequities and injustices and more tainted exports. A politically reformed China would be an even more formidable economic power, but a less destructive one.