Why China Is Facing Deep Trouble

[JayAtl]

If the problem is that China's current economic model is running out of steam ("China's Reform Moment," Review & Outlook, July 1), the remedy is not for China to somehow tolerate limited free-market activities operating on the fringe of the vast state-controlled economy. China is in deep economic trouble, and the recent credit crunch is a symptom of a much deeper economic malaise.

Throughout human history no nation has ever sustained economic growth over a long period without adhering to freedom of contract and the rule of law. China will be no exception to this rule. China's current economic model provides just enough economic stability over the short term to further embed a corrupt and politically connected elite. This system stifles the innovation necessary to sustain growth. It is a fragile economic system, ill-suited to the dynamism of the marketplace. Democratic capitalistic systems spontaneously generate new synergies, technologies, industries and innovations.

The current leadership will never be able to make the necessary leap to a robust free-market system because this will always threaten the dominance of the Communist Party elites who have, during their 64-year reign, sought survival of the party at all costs.

Why China Is Facing Deep Trouble - WSJ.com

 

[East Asia United]

Post reported...

It is a repeat of a previous post.

 

[JayAtl]

Post reported...

It is a repeat of a previous post.

You are such a bad azzz

 

[East Asia United]

You are such a bad azzz

Post reported.

 

[JayAtl]

Post reported.

showing you in your true racist color is problematic?

 

[manojb]

Avoid China: Subprime-Like Bubble Brewing


Growth in the speculative shadow banking sector threatens a credit crisis and could suppress future growth.

Avoid China: Subprime-Like Bubble Brewing

 

[ephone]

as bad as india is facing now???

If the problem is that China's current economic model is running out of steam ("China's Reform Moment," Review & Outlook, July 1), the remedy is not for China to somehow tolerate limited free-market activities operating on the fringe of the vast state-controlled economy. China is in deep economic trouble, and the recent credit crunch is a symptom of a much deeper economic malaise.

Throughout human history no nation has ever sustained economic growth over a long period without adhering to freedom of contract and the rule of law. China will be no exception to this rule. China's current economic model provides just enough economic stability over the short term to further embed a corrupt and politically connected elite. This system stifles the innovation necessary to sustain growth. It is a fragile economic system, ill-suited to the dynamism of the marketplace. Democratic capitalistic systems spontaneously generate new synergies, technologies, industries and innovations.

The current leadership will never be able to make the necessary leap to a robust free-market system because this will always threaten the dominance of the Communist Party elites who have, during their 64-year reign, sought survival of the party at all costs.

Why China Is Facing Deep Trouble - WSJ.com

 

[manojb]

China's bloated industry to face market forces

"BEIJING, Aug 16 (Reuters) - Momentum is growing in China to allow market forces to end a titanic capacity glut in heavy industry that a decade of state interventions has failed to resolve, according to speeches made by high-ranking officials this month at a closed-door event."
RPT-Steeled for change: China's bloated industry to face market forces | Reuters