Mike Chu

The Individual and the Collective: Globalization and Human Rights

Dr. Sarita Cargas

Human Rights and the Ethics of Investment in China

In Chapter 5 of “Human Rights and the Ethics of Globalization,” Daniel and Elizabeth

Lee explore the ethicality of investing in China despite the widespread violation of human rights

throughout the country. China is developing rapidly, and as such, possesses incredibly

profitable opportunities for foreign investors. Although the nation also has a history of denying

its citizens of rights explicitly stated within their constitution, the Lees argue that the best course

of action for everyone involved is not to boycott, but to keep investing under certain conditions.

Throughout the chapter, the authors investigate the extent of the government’s abuse of its

citizens and assert that businesses have the ability to help ensure universal human rights for

everyone in the country.

According to Chinese government, all citizens are ensured equal rights, one being the

right to free speech. However, the authors say that it is “not unusual for official Chinese

government statements to take liberties with the facts” (85), and upon analyzing the reports

given by the U.S. Department of State in 2009 and 2016, it becomes apparent that these

statements tend to be spurious indeed. The Lees mention a man named Huang Qi, a civil rights

activist who criticized the government’s building practices after an earthquake that killed over

80,000 people. He was arrested in 2009 for “possessing state secrets,” and sentenced to three

years in prison (Reuters). In November 2016, he was detained once again along with two other

activists. The three men have not been heard from since (Forsythe).

One of the most controversial topics discussed in this chapter is the subject of

reproductive rights. It’s is no secret that China is the most populated of all countries in the world,

and according to the CIA World Factbook, the estimated population in early 2017 was

1,379,302,771. In the late 1970s, the government decided to regulate their rapid population
growth with the infamous “One Child Policy.” In 2015, the policy was softened to the “Two Child

Policy,” but the core idea remains the same. Any family that had a child beyond the limit would

be fined heavily, in some cases over ten times their annual income. While it is important to note

that few of the Chinese saw this law as a human rights violation—many saw the policy as a fair

approach towards controlling overcrowding—the way that the law was enforced left much to be

desired. The Lees, perhaps because of insufficient information at the time, fail to show how the

fine affected the population unequally, or how governmental influence often directly caused

coerced abortions and sterilizations (CBC). The authors weaken their argument by trying to

package both issues into one instead of separating the subjective cultural issue from the

obvious abuses, particularly towards women.

The second issue discussed is that of religious freedoms. The Lees very quickly

highlight the fact that the government only recognizes five main religions, and forces each of

them to adhere to methods of worship deemed “normal” and “lawful.” Unregistered groups often

have no way of registering, and leaders of such groups are often arrested, abused, and told to

stop meeting. One of the most abused groups is called the Falun Gong. Labeled a “cult” by the

Chinese government, members have been imprisoned and reportedly “secretly put to death so

that their organs could be used for transplant” (94). The Lees clearly and convincingly prove that

the Communist Party is only interested in preserving the freedom of religion provided it does not

affect their absolute control over the nation.

The last point discussed by the Lees is that of worker’s rights. While workers are

technically allowed to unionize, the only labor organization approved by the Communist Party is

the “All-China Federation of Trade Unions (ACTFU), which is controlled by the Communist

Party. Because of this, collective bargaining is a very seldom occurrence, if it happens at all. In

2008, when the credit markets collapsed, factories reduced their prices by slashing workers’

wages. Local governments get around minimum wage laws by imposing “arbitrary fines and

wage deductions on their workers for alleged breaches of company rules” (99), or by forcing
them to work unpaid overtimes to fill unreasonable quotas. The authors mentioned several

related stories, including five teenage girls dying of asphyxiation at the Lihua Textile Factory,

thirty-three migrant workers confined in a ninety-eight-square-foot room, and even reports of

child labor. Quite obviously, the state of human rights for workers in China is in terrible disrepair.

However, there is most definitely hope for improvement.

The Lees believe that the best approach for multinational companies is a path of

“constructive engagement.” Blindly chasing profits would simply exacerbate the problem, but so

would complete divestment. Instead, the authors believe that there is a way to “liv[e] and work

together for the common good” (104). In South Africa in the 1970s, the Sullivan Principles were

created as a guideline to help foreign investing companies improve the treatment of the workers

in the area. By 1994, Nelson Mandela was elected as president, and the apartheid ended. In

1997, the Global Sullivan Principles of Social Responsibility was released to the world, and the

Lees argue that applying an adapted version of these principles would be the most beneficial

step towards equal human rights in China.

The chapter offers a compelling argument for why and how multinational companies

should invest in China. Daniel and Elizabeth Lee definitively prove that the country has a long

history of human rights abuse, and go on to analyze and suggest a feasible way to begin fixing

the issue. Although parts of the argument could have been made stronger with better focus on

the Chinese government’s actions, the authors provided more than enough evidence to back

their claim. Businesses from everywhere can have a positive influence on the development of

China; as big as the country is, it is possible to ensure human rights for all.
 Works Cited

Lee, Daniel E., and Elizabeth J. Lee. Human Rights and the Ethics of Globalization. Cambridge

University Press, 2010.

“Country Reports on Human Rights Practices for 2016.” U.S. Department of State, U.S.

Department of State, www.state.gov/j/drl/rls/hrrpt/humanrightsreport/index.htm#wrapper.

“International Religious Freedom Report for 2016.” U.S. Department of State, U.S. Department

of State, www.state.gov/j/drl/rls/irf/religiousfreedom/index.htm#wrapper.

Reuters. “Man Charged After Quake in China Gets 3 Years.” The New York Times, The New

York Times, 22 Nov. 2009,

www.nytimes.com/2009/11/23/world/asia/23quake.html?ref=topics.

Forsythe, Michael. “3 Chinese Rights Activists Vanish, Apparently in State Crackdown.” The

New York Times, The New York Times, 30 Nov. 2016,

www.nytimes.com/2016/11/30/world/asia/china-human-rights-activists-

arrested.html?ref=topics.

“The World Factbook: CHINA.” Central Intelligence Agency, Central Intelligence Agency, 21

Sept. 2017, www.cia.gov/library/publications/resources/the-world-factbook/geos/ch.html.

News, CBC. “5 Key Facts about the Family Planning Law China Is Repealing.” CBCnews,

CBC/Radio Canada, 29 Oct. 2015, www.cbc.ca/news/world/5-things-to-know-about-

china-s-1-child-policy-1.3294335.