Internal documents and interviews reveal an emerging mode of state reaction. In the context of protest, the court and related government agencies engage the protesters on the street and often grant a favorable resolution. This “street as courtroom” is a result of the weak capacity of the legal system coupled with a government-wide campaign to build a “harmonious society.” The findings of this project thus demonstrate the operational patterns of the court and the state when facing labor protest and what role the Chinese judiciary has played in this process.

But this way of handling labor disputes also exemplifies a dilemma faced by the state. With the deepening of the marketization process, the state has tried to govern society with law. Specifically in the labor section, it has given more substantive rights to the workers in a way to balance the labor-employer relationship. But when the workers cannot vindicate these substantive rights through the established institutional channels, the state, afraid of losing control, is extremely uncomfortable enshrining the rights of strike, association, and demonstration. With maintaining social stability as the most serious concern, the state has to accommodate many such labor protests. Taking the cases to the street has thus become a de facto right for the workers. To solve this dilemma, the state, if still being pragmatic in governing society, shall make further efforts in strengthening the established legal channels. This will help to facilitate the process of delivering justice to the workers. The state shall also institutionalize the rights of protest. This will not only help to withhold the conflict within the established channels, but also avoid further challenges to its legitimacy.