| Summary: | Labour standards are problematic in China, but focusing on the incapacity of labour law to regulate the labour market is unsatisfactory. Labour law must be placed first in the dynamic of the Chinese transition and second has to be analysed from the point of view of J. R. Commons’ institutional theory. China is facing the “problems of labour” arising from a non reasonable capitalism leading the rural migrant labourers to bear enormous and destabilising costs. Labour law appears as a solution whose goal is to ensure the viability of this new working class with socially inclusive policies and then institutionalises its economic security. Furthermore, in a context characterised by the socialist legacy and the lack of democracy, we have to question the relations with the law and the State. The Commons’ Law & Economics opens the opportunity to understand what are either the issue related to the conflict on the rules and the building of a new social compromise. Then the labour law, clearly instrumentalised by the Communist Party and supporting its social stability project, appears to be at the hart of the process of institutionalisation of the new Chinese migrant working class.
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