That some liberals want and local governments fear

A GRANDMOTHER killed trying to stop developers flattening her home; university graduates forced to live in crowded slums: China’s ebullient property market has generated many tales of woe, and a promise from the prime minister, Wen Jiabao, to “rein in” the speculators. But calls for this to be achieved with a new property tax have put the government in a bind.

In the past year property prices have surged to new highs in some places, helped by a torrent of carefree lending from state-run banks. Mr Wen made his pledge on March 5th, in a speech to China’s parliament, the National People’s Congress (NPC), launching its annual ten-day session. The NPC is filled with party loyalists. But some have fretted openly about property bubbles. The government says house prices in 70 cities rose 10.7% in February compared with a year earlier, the fastest rise in 20 months. There are early signs that this is denting sales. In both January and February the volume of housing sales fell sharply from the previous month. ...

Apple uncovers poor conduct at some of its contractors

APPLE is renowned for the control it exercises over every element of its business, from design to marketing. The resulting products, to its fans, verge on perfection. But there are clearly some steps in the manufacturing process that it does not supervise so closely. According to a report the firm released on February 23rd, the treatment of workers at several of its contractors in various countries broke both local laws and Apple’s own standards. Such problems are thought to be rife at Western firms’ suppliers in China in particular, but are seldom brought to light. Even Apple’s account raises more questions than it answers.

Apple says some of its suppliers hired underage employees, dumped hazardous waste illegally, made staff work unreasonable hours and paid less than the minimum wage. They also violated Apple’s own standards by discriminating against pregnant women, providing inadequate safety equipment and imposing onerous recruitment fees on workers. Remedial steps, the company says, have already been taken. But it does not specify where these events occurred or how many people were affected. Over the past three years the firm has increased the number of facilities audited each year from 39 to 102. But how much of its production this represents is not disclosed. The report does, however, observe that Apple’s suppliers are good at protecting its intellectual property, if not their workers’ rights. ...

China will test the WTO’s dispute-settlement system

IN 2009 China overtook Germany to become the world’s largest exporter. Exactly half the trade disputes that were filed at the World Trade Organisation (WTO) last year involved China. These facts are not unrelated. As Pascal Lamy, the WTO’s chief, pointed out in January, the scope for trade friction increases as countries trade more. Disputes between China and other countries are only to be expected.

Mr Lamy did not have to wait long for evidence to back up his claim. On February 8th China complained to the WTO about the European Union’s anti-dumping duties on Chinese-made shoes. This latest fracas over footwear follows recent complaints by the Chinese about restrictions on its exports of steel fasteners, car tyres and poultry. Having initiated just two disputes between joining the WTO in 2001 and September 2008, China has complained to the WTO another five times since then. Marc Busch of Georgetown University in Washington, DC, says that China has moved from “learning by watching”, where it mainly observed others’ trade tussles, to being an active participant in formal dispute settlement. ...