Executive Briefings

Is China About to Clamp Down on Business Again?

How far China has gone in transforming its economy is a matter of debate. Unarguably, it remains a place where companies face heavy direct and indirect state control. But in places there has also been dramatic change, and China has prospered as broader economic freedoms contributed to growth. Outright criticism of the shift was muted, even among bureaucrats opposed to the new approach. But over the past year this reticence has begun to wane, as the crisis in the West has led to intense criticism of capitalism--and one domestic industry after another has, as in the West, gone back to the government for support.
Source: The Economist

How far China has gone in transforming its economy is a matter of debate. Unarguably, it remains a place where companies face heavy direct and indirect state control. But in places there has also been dramatic change, and China has prospered as broader economic freedoms contributed to growth. Outright criticism of the shift was muted, even among bureaucrats opposed to the new approach. But over the past year this reticence has begun to wane, as the crisis in the West has led to intense criticism of capitalism--and one domestic industry after another has, as in the West, gone back to the government for support.
Source: The Economist