China- What future does it face in its ideological straightjacket regarding its economic development?

Essay by Keir September 2005

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Where is China heading economically and socially? We can follow the well-worn path to prosperity...Japan did it, Hong Kong did it, Korea did it, and Singapore did it, etcetera. I feel that as labour gets more expensive, China will raise the value chain. Many claim that it is a given that in China:

a) The export onslaught is inevitable in most if not all sectors

b) Chinese exports will eventually meet and possibly surpass current premium quality standards for whatever product is being discussed

c) free markets are not going away

The challenge for Chinese products is whether they will ever be known for their quality rather than their price, and also how their Asian and other competitors will react. Once one gets away from competing on price, it becomes a far more level playing field. China is a long way behind.

However, I do not think that Japan and the Asian Tigers had anywhere near China's very high levels of corruption eating away at the economy like a cancer.

The fascist rulers in China accept this corruption, which is mostly from its own cadres, as the price China pays for fascist-controlled economic development.

Over the last thirty years China has offered the dream of the mystical Chinese market in front of the eyes of all foreign companies, as it has done for several hundreds of years allowing it to gain the technology it needed to develop home grown industries like comparison and convenience goods, high technology goods and vehicles.

A short cut to success. Of course, cheating foreigners and stealing existing technology is easy but moving on to the next stage will be China's Achilles heel. Chinese companies do well stealing and using existing designs but when it comes to spending the huge sums needed to...