China’s crony capitalism will cost the country
The Communist Party in China is as crony capitalist as it is communist these days. It has embraced its role as ruler of a state capitalism state. However, with state capitalism comes a fundamental fragility.
The beauty of a free market is its natural tendency to renew itself. When economic activity is twisted and manipulated for the politically connected sooner or later weaknesses in the system emerge as economic renewal is restricted.
Perhaps Li’s brother really shouldn’t be running that manufacturing plant. But because Li’s brother is Li’s brother and Li is politically connected Li’s brother gets to run it. Li’s brother doesn’t want to disapoint Li who got him the job and so Li’s brother cooks the books. Li knows that the books are being cooked but as long as his crony sponsor is OK with it Li is OK with it. And so it goes until reality breaks through.
Reality hasn’t broken through in China yet, and it may still be a long time before it does on a broad scale.
An arms race with the US may speed any trouble along however.
(From Project Syndicate)
Like the Soviet Union, China is paying through the nose for a few friends, gaining only limited benefits while becoming increasingly entrenched in an unsustainable arms race. The Sino-American Cold War has barely started, yet China is already on track to lose.
http://www.againstcronycapitalism.org/
Source: https://www.ac2news.com/2018/09/chinas-crony-capitalism-will-cost-the-country/
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).