Politics, not economics, is in command in China. But two recent decisions to defy the market may come back to haunt the leadership: price fixing for key commodities and the block on Singapore’s bid for a major stake in China Eastern Airlines. It was not the first time and will not be the last that a government has tried to order the tides to recede. But if ever there was a sign of growing alarm among China’s leaders at the threat of inflation, it was the January 9 announcement aimed at stopping price rises by decree, a vain hope that somehow market forces can be leashed and the country can return to a command economy.
China Commands the Economic Waves to Stop
China Commands the Economic Waves to Stop
China Commands the Economic Waves to Stop
Politics, not economics, is in command in China. But two recent decisions to defy the market may come back to haunt the leadership: price fixing for key commodities and the block on Singapore’s bid for a major stake in China Eastern Airlines. It was not the first time and will not be the last that a government has tried to order the tides to recede. But if ever there was a sign of growing alarm among China’s leaders at the threat of inflation, it was the January 9 announcement aimed at stopping price rises by decree, a vain hope that somehow market forces can be leashed and the country can return to a command economy.
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