August 2, 2012
The Beijing Model Bubble
Comment: This is one of the comparatively few articles that attempts to briefly explain why the Chinese economic miracle “isn’t.” The primary objective of the Chinese Communist Party is to retain power. Increasingly, the second objective of Chinese Communist Party officials is to get rich. A country cannot grow and sustain free-market capitalism when it also attempts to both profit from it directly while managing and shaping its growth via directives from a central power. The “free market” is best able to adapt to rapidly changing conditions because it has the inherent flexibility to change as needed. This is something the Chinese are only pretending to have; the rampant corruption in their system will eventually lead to retrenchment if not outright collapse in the coming years.