It isn&#x27;t that simple, right now it is a basic prisoner&#x27;s dilemma: if factory A &amp; B follow the law, they both have higher costs but these can be passed on; if A follows the law and B does not, then A goes out of business as their costs are higher than B; if A &amp; B don&#x27;t follow the law, then the environmental costs are passed on. Right now, the last case wins because the laws aren&#x27;t enforced evenly.<p>China is not a dictatorship, but it is definitely autocratic even if the autocracy is distributed. Local party leaders are just as autocratic as central party leaders, and generally are more corrupt (getting more for their family, for example).