Wednesday, March 7, 2012
Conflict About Chinese Economic Power Precedes Rare Transition
Later in 2012, a new administration will take control of the Standing Committee of the Politburo. Consequently, powerful politicians in China have been positioning themselves to become one of the nine new members of the Politburo. This competition and posturing was furthered when the World Bank and a Chinese research organization produced a report ("China 2030") that encouraged Chinese policymakers to move further in the direction of a market economy. A Chinese publication with a great deal of government connections harshly criticized the report, calling it 'unconstitutional' and subversive to socialism. Despite the antagonism between the countries, the criticism was remarkably similar to many criticisms of American policy, if you just replace 'socialism' with 'capitalism'. However, Chinese power was not unified against decreasing government's control of markets. The editor of China's top business magazine, Caixin, published a an essay that emphasized socialist inefficiencies, including inefficient use of capital, and corruption. I am curious to see how the transition of power plays out in China, and what side of the fence the new Chinese government will fall on. I will also be curious to see the effect of foreign opinions on Chinese policy.
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2 comments:
This article is quite interesting to read. It reflects the transition and transformation of an economic system. Over the years, the growth of the Chinese economy appears to have a stronger conflict with its socialist market economic system. The growing market and accumulation of capital, as well as the trend of liberal among its citizens yield a higher share of market and a freer market. However, certain ingrained groups in China strongly enforce the socialist central planning system, and resulting the conflict on both sides. The government China 2030 report and the criticism is a good and sharp example.
This is a very interesting article. In this article, the report expressed the concern that state companies could impede the development of home-grown companies. But the reports also expressed worry about the rising private companies would be less socially responsible. By implanting proper regulations and rules, the government should be able to efficiently lead the market and to set social responsibility of firms, for example, charging extra tax for pollution.
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