As the principal negotiator for the landmark market access agreement that led to China’s accession to the World Trade Organization (WTO), I have reflected on whether the agreements we negotiated really lived up to our expectations. A sober reflection has led me to conclude that those trade agreements did not.
Headquarters was worried. Complaints were flooding in from the Chinese countryside about the quality of the new Haier washing machines. The water pipes were defective, the peasants told the Chinese manufacturer. But when the Haier team went to investigate, they were surprised to discover that the pipes were not broken or poorly fitted. Rather, they were clogged with yam skins. The peasants had been washing their dinner ingredients, not their clothes. An American manufacturer might have lectured the consumers about the proper uses of a washing machine. Haier’s CEO, Zhang Ruimin, decided instead to design a machine with wider pipes that could wash both clothes and large root vegetables. He called it the Big Yam, and the machine became a big seller in the Chinese countryside.
A major debate is underway in China on a proposed law that would grant new rights to Chinese workers. The debate has not been widely reported outside of China; until recently it has been almost entirely ignored by media in the United States. But when the Chinese government opened a 30-day public comment period this spring, it received nearly 200,000 comments, the majority from ordinary workers. But some comments also came from big U.S.- and European-based global corporations and their lobbying groups. These powerful forces squarely opposed the new law.
Transnational corporations (TNCs) increasingly shape our lives as they weave worldwide webs of production, consumption, finance, and culture.