When the facts change, I change my mind. What do you do? -- John Maynard Keynes

Wednesday, April 17, 2013

China Market Model Defective

The Limits of China’s Market Model - ". . . the 10th anniversary of China’s joining the World Trade Organization and seeing China heading in a much different direction than had been anticipated. Instead of pursuing further market reforms and expanding the role of private enterprise, China had turned back to state-owned enterprise and begun strong-arming multinationals to hand over their most advanced technology to their state-owned business partners. I wanted to dig deeper into this situation while stepping back to look at the overall picture of where China had come from and where the country is headed as a political-economic entity. . . In the long run the United States doesn’t need to worry about Chinese state enterprise taking over the world. They are simply too political and inefficient. But as these state-owned enterprises go out into the world fueled by huge subsidies and favorable policies, they will be able to destroy quite a few good companies that are simply efficient businesses. Look at what we’ve seen with solar and wind companies in the United States and Europe already. . . " read more at http://economix.blogs.nytimes.com/2013/03/27/the-limits-of-chinas-market-model/?smid=pl-share


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Financial Crisis - The Telegraph

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