China’s state capitalism is a messy mix of market, plan, and one-party
rule. Less than half of the economy is directed by the state; the rest
is private and market driven. Except for infrastructure and other
nontradables, both Chinese economies operate in the world economy.
Although not well known, China’s rapid growth derives primarily from
private companies, despite the state policy of “state advance, private
sector retreat.” The new leadership that takes command at the end of
2012 must decide whether to liberalize and privatize the state sector as
advised by the World Bank’s China 2030 programs or bow to the
entrenched interests of the state sector. How they decide will determine
China’s long term growth.
China’s battle between plan and market is fought day by day on
many fronts. What appears to be a minor dustup between the Ministry of
Finance and the Securities Regulatory Commission over accounting
practices for publicly traded companies is illustrative of the war
between market and plan and between the private and state sector.
go to forbes.com
oh my god! Again ...
ReplyDeleteReally great post
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