Chinese Law Prof Blog

Editor: Donald C. Clarke
George Washington University Law School

Saturday, January 26, 2013

Law and economics in the Beijing taxi industry

Some years ago I read a fascinating law-and-economics analysis of the Beijing taxi industry [available here; thanks to a commenter for the link] written by a Chinese graduate student under Prof. Fang Liufang; as a piece combining empirical research, economics, and law it really stood out among the usual crop of dreary statutory exegeses. I was reminded of it today when I came across a pair of articles discussing well known (at least, well known to those of us who spend time in Beijing) problems getting taxis in Beijing.

The Global Times reports that the Beijing government recently passed rules designed to address the problem: if a taxi company is the subject of too many complaints (for example, about drivers refusing to pick up during peak times), then it will be punished. This attempt at a cure obviously reflects a particular diagnosis: that the reason drivers refuse to pick up fares is just simple cussedness.

But of course that's ridiculous. Like most of us, Beijing cab drivers hope to earn money from their occupation. And as anyone who has talked to a Beijing cab driver about this knows, a cab driver loses money by taking fares during rush hour and other times when traffic is jammed (which is a lot of the time in Beijing). The meter simply ticks over too slowly for them to recover their fuel costs; they're better off parking of-road with the engine off instead of parking on the Third Ring Road with the engine running.

One obvious solution is to raise the permitted rate, which has stayed the same now for (I believe) over a decade, although fuel surcharges of one or two yuan per trip (totally unrelated to distance) have been around for a while. Another solution is to return to the good old days of the 90s, when different classes of taxis were allowed - some were nice cars that cost more, some were in ... let's say, less nice vehicles, and cost less. A third alternative is to subsidize taxi drivers - this is suggested by Prof. Meng Bin, a professor of urban planning quoted in the Global Times story. (This seems like the worst solution to me; subsidies are always tremendously hard to administer and vulnerable to cheating, and it's hard to see why (relatively well-off) taxi riders should be supported by (less well-off) non-taxi riders. In addition, Prof. Meng suggests this because he's opposed to any increase in fares; it's hard to see the basis for thinking that somehow the current fare structure, in January 2013, by some amazing coincidence is exactly what it should be and mustn't be changed.)

For a more detailed analysis of the economics of it all, see this article by Michael Cormack.

January 26, 2013 in Commentary, News - Chinese Law | Permalink | Comments (2) | TrackBack (0)

Friday, January 25, 2013

Bo Xilai trial scheduled for Jan. 28th in Guiyang, to last three days

That at least is what's being reported in Hong Kong's PRC-affiliated Ta Kung Pao (大公报). His defense lawyers are Li Guifang and Wang Zhaofeng of Beijing's Deheng Law Firm. I don't know anything about Wang, but Li is a respected figure.According to some reports, Bo's son Guagua had previously attempted to retain another lawyer - Li Xiaolin, who had defended Gu Kailai's accomplice, Zhang Xiaojun - but Bo had nixed it. Li Xiaolin is quoted in the Ta Kung Pao as saying he didn't mind: "The less I know [about this case], the better."

UPDATE: The Duowei news site says that the Guiyang Intermediate People's Court states that it has "received no plans" for the trial of Bo. This is kind of a strange locution to use if an outright denial was intended. On the other hand, they're going to look pretty silly if the trial does indeed go ahead on the 28th and they insist they knew nothing about it a mere three days earlier, and they must know that, so maybe the denial is accurate. Wheels within wheels!

January 25, 2013 in Commentary, News - Chinese Law | Permalink | Comments (0) | TrackBack (0)

Thursday, January 24, 2013

New dean for Peking U's School of Transnational Law in Shenzhen

It's Philip J. McConnaughay, who will step down as dean of Pennsylvania State University's Dickinson School of Law on July 31st of this year and take up his new duties the following day. Here's the news report.

January 24, 2013 in News - Chinese Law, People and Institutions | Permalink | Comments (0) | TrackBack (0)

China's new Mental Health Law - an interview with Guo Zhiyuan

Here's an informative interview with Prof. Guo Zhiyuan of the China University of Political Science and Law on China's 2012 Mental Health Law. Well worth reading is this subject interests you at all.

January 24, 2013 in Commentary | Permalink | Comments (0) | TrackBack (0)