Honestly, with the fact that China could so easily result in a massive North Korea, how would that help the standard of living?
China isn't a simple situation and assigning childish ethics to the country will resolve nothing. The simple allowance of unions in China could easily result in another global recession. A college strike here in Ontario is threatening the provinces recovery as it may delay the graduation of all those getting retrained due to the financial crisis. Simply imagine what happened if unionization occurred throughout China and the ramifications for the countries trade.
China is going to require baby steps to bring it into a democratic and free world, anything faster could be an international economic disaster on the scale of the great depression.