Just the same, we hear rhetoric from certain businessmen who contend that the U.S. needs to trade with China. It will open up their society, they say. But what is going on in China isn't free trade, but trade on the Chinese government's terms. The Chinese military operates commercial enterprises so it can pay for the ever growing military and acquire technology from foreign businesses. No rule of law protects Chinese or foreign investors.
Official corruption is widespread.
A disagreement with a business partner who has official connections can land you in jail, or worse. In 1994, Revpower, a Florida company won an international arbitration award against a Chinese state-owned enterprise. Despite China's obligations as a party to the 1958 Convention on Recognition and Enforcement of Foreign Arbitral Awards, China has failed to enforce the award in its courts. In this case, the court found Peng innocent of any wrongdoing, but local officials who saw an opportunity to extort money from Peng and his partners. Peng has been in jail ever since.