In an article appearing in the American Spectator, Samuel Gregg discusses the growth of religion in China, its system of crony capitalism, and its need to accept freedom. Opening the column, Gregg describes how the Catholic Church’s freedom from state control in China is at stake. Gregg later explains that there isn’t just corruption in China’s crony system of capitalism, but also in its society:

It’s abundantly clear, for instance, that China’s economy is hardly the capitalism envisaged by Adam Smith. Instead, it’s a crony-capitalist arrangement. One symptom of this is the extensive corruption prevailing throughout Chinese society.

In 2010, Transparency International ranked China as 78th out of 179 countries on its Corruption Perceptions Index. That made China only slightly less-corrupt than Russia! Moreover, as Yashen Huang illustrates in Capitalism with Chinese Characteristics (2008), apparatchiks from China’s Communist party, government, and military exercise far-reaching control over thousands of the businesses powering China’s development in the special economic zones. That’s a recipe for a growing culture of accelerating bribes, nepotism, and fraud.

Wiser heads in China, however, know crony capitalism isn’t infinitely sustainable. In the long-term, China needs the rule of law and a stable system of property rights — all of which implies limiting the capacity of those with political power to act arbitrarily.

But while rule of law and property rights are essential for sustainable economic growth, they are not enough. Equally important is a generally accepted moral culture that most people have internalized and generally follow.

The moral culture in China has been dismantled by the government. Gregg argues the rule of law and property rights are not enough for economic growth, China also needs a moral law. After the decimation of Confucianism, which provided the moral glue for the Chinese society, many are now turning to religion:

And religion is plainly on the rise in China. Five years ago, the English language version of the Communist Party’s newspaper, China Daily, reported on the results of studies done by Shanghai University professors which indicated that millions of Chinese — especially the young and particularly in the special economic zones — were ing Christian.

This shouldn’t be too surprising. It is materialism that leads to atheism, not the growth of wealth per se. Economic liberty requires and encourages people to think and choose freely. But such thoughts can’t be quarantined mercial considerations. With increasing wealth, many Chinese now have the time and resources to explore life’s more important questions. Many have found answers in Christianity.

Such developments, according to some Chinese officials, aren’t necessarily a bad thing. Back in 2006, the then-head of China’s religious affairs ministry, Ye Xiaowen, begrudgingly acknowledged the various Christian churches’ contributions to helping Chinese society cope with the effects of increasing wealth.

While China will benefit from a strong moral presence within its borders, which will aid in solving its corruption problems, Gregg foresees the Catholic Church and the Chinese government being at odds when the government questions doctrines or bishop appointments. There is a way out for China, as Gregg concludes, and that is by accepting freedom:

The way out, of course, is for China’s rulers to accept freedom’s indivisible character. Once you concede religious or economic liberty, it’s hard to quarantine its effects. Acknowledging this, however, would require China’s Communist Party to self-terminate its grip on political power. Regrettably, as history illustrates, Communists never do that — or at least not until it’s truly inevitable.

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