I had just finished writing the lengthy post (below) on Church property in China when I received a phone call from a friend suggesting that I take a look at David Barboza’s June 24 New York Times story about being detained at a Chinese toy factory. It is an excellent piece of work for many reasons, but for now I’ll merely point out a passage that deals with the de facto autonomy with which local governments operate in China:
Many experts have told me that one of the most serious problems in China is that the government lacks the power to control the nation’s Wild West entrepreneurs, deal makers and connected factory owners.
Bribery is rampant, and government corruption widespread. Just a few weeks ago, the top food and drug regulator was sentenced to death for taking huge bribes from pharmaceutical companies. But it’s not clear that strong messages like that will stop the anarchy.
“China effectively has no oversight over anything,” said Oded Shenkar, a business professor at Ohio State University and author of “The Chinese Century: The Rising Chinese Economy and Its Impact on the Global Economy, the Balance of Power and Your Job.”
“People have this idea they are Big Brother and everyone is under watch,” Mr. Shenkar said. “But this is not China. In China, local authorities often turn a blind eye to problems because maybe they’re invested in it.”
In addition to discussing this issue in the context of Church property, I’ve recently blogged about it here and here.