Friday, August 05, 2005
China and Free Markets
When did China, an admittedly Communist country, join the free-enterprise club?
CNBC's Larry Kudlow is concerned that Congress is interfering with free markets by hindering Cnooc's purchase of Unocal. The editors of the New York Times fret that the U.S. government, in doing so, is mistreating and alienating China.
The Chinese state owns or controls nearly all means of production and the financial system. The Chinese government manipulates its stock market as a matter of policy. Information flow is limited and censorship is the norm. Rather than feeling alienated by Congressional jawboning, Chinese officials should feel right at home. Indeed, that seems to be their response.
China has a long march ahead of it on the road to economic reform. Chinese officials have received a strong message to that effect. Whether they choose to listen is an open question. --GAHJr
CNBC's Larry Kudlow is concerned that Congress is interfering with free markets by hindering Cnooc's purchase of Unocal. The editors of the New York Times fret that the U.S. government, in doing so, is mistreating and alienating China.
The Chinese state owns or controls nearly all means of production and the financial system. The Chinese government manipulates its stock market as a matter of policy. Information flow is limited and censorship is the norm. Rather than feeling alienated by Congressional jawboning, Chinese officials should feel right at home. Indeed, that seems to be their response.
China has a long march ahead of it on the road to economic reform. Chinese officials have received a strong message to that effect. Whether they choose to listen is an open question. --GAHJr
