Harney argues that Beijing must enforce rules better. But that is, first, over-optimistic because no central government can enforce countrywide rules, and second, misses the point about Beijing’s political-economic DNA. China’s economic success is built on increasing exports-plus-investment and keeping consumption low; India’s share of mass consumption in GDP is similar to that of western countries, but China’s is much lower. This model goes with factory-floor horrors because both draw power from the political system’s ability to keep a lid on popular disaffection.
Crucially, the factory’s economics may be changing a bit for China. Inflation is up and so is the currency — you don’t see so many stories about the undervalued yuan anymore — and those fabled low-export prices are under pressure to rise. Harney, interestingly, wrote in Slate recently, speculating whether cheap Chinese goods will get expensive.
If the export model faces more pressure, will China respond by making its factories even worse, so that the price advantage is not lost? You really need homegrown muckrakers for that question to be asked effectively.

EXCERPT
The story of China’s emergence as the world’s workshop starts with the story of one of its most enthusiastic customers: the United States of America. In the aftermath of World War II, American officials decided that the country’s foreign policy interests were best served by helping rebuild the global economy. Policymakers were convinced of the economic and security benefits of free trade, and US businesses wanted markets for their products overseas. Washington poured money into reconstruction of industry in Europe and Japan and encouraged imports to rejuvenate foreign economies through “trade, not aid.”
Reversing earlier policies that protected American industry by keeping import tariffs high, postwar officials lowered them. President Truman reassured the public that “American labor can now produce so much more than low-priced foreign labor in a given day’s work that our workingmen need no longer fear, as they were justified in fearing the past, the competition of foreign workers.”
Over the following years, the American government continued to promote free trade. By the time, China emerged from three decades of relative isolation in 1978, American customers were accustomed to seeing foreign labels on their shoes, clothing and toys. And American manufacturers were in the habit of fighting back.
Long before there was a China price, there was a Japan price, a Hong Kong price, a Taiwan price and a Mexico price though they weren’t known as such.