The Mises Institute recently spoke with Mark A. DeWeaver about the Chinese economy, malinvestment, booms and busts, and his new book Animal Spirits with Chinese Characteristics. Mark DeWeaver, PhD, manages Quantrarian Asia Hedge. He lived and worked in China from 1985-1994, first as a student at Sun Yatsen University in Guangzhou, and later as a research analyst for Peregrine Brokerage (now part of BNP Paribas).
Mises Institute: There is a great deal of confusion
concerning the Chinese economy and its trade and monetary policy and mystery
concerning its ability to generate double-digit rates of economic growth. Let
us start by giving us a description of the Chinese economy and whether it is
socialism or capitalism at work.
DeWeaver: China has well-developed product markets but
can hardly be called capitalist, given that most of the means of production are
at least partially state owned.At the same time, the Chinese economy has also
never really been centrally planned. Most economic decision making takes place
at the local-government level, much as was the case during the Maoist period.
The system might be best described by the seeming double oxymoron, capitalism
with limited private ownership, socialism with limited planning….To Read More…..
My Take - Nothing
is ever as it seems in China! Their growth numbers are not to be believed, they
are building cities no one lives in to maintain employment, they are spending
massive amounts on their military, the numbers from their banking system are
made up, they are having demographic problems that is bound to cause serious
problems in the future, the average citizen feels the communist government is illegitimate,
the non-Han ethnics hate the government and the majority Han and corruption
among the powerful elite is such that it may at some point collapse the
government. Nothing is ever as it seems in China!
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