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The Forum > Article Comments > China’s rumble with globalisation - part I > Comments

China’s rumble with globalisation - part I : Comments

By Xu Sitao, published 1/8/2008

Price controls do not insulate China from global economic problems and inflationary pressure.

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sitao wrote 'The government delicately balances the need to listen to investors and the need to protect the poor.'

I agree with above but disagree with 'Chinese policymakers should realise that an economic model to sustain growth for the longer term can only be achieved by removing severe distortions stemming from artificially low prices of land and pollution, as well as energy.'

I think chinese policy makers are in the right direction...any developing/changing market is intrinsically unstable...and the poorest of poor most vulnerable and first rapid increase in fuel prices causes basic commodities to rise...while basic minimum wages freexe as businesses try to watch their profit line by reducing their primary cost in production...

and crucial point is the daily life of the they have enough income to survive increase cost to food/dwelling/transport...not business profit lines decreasing so less to reinvest...which important and linked but below the poorest interests...

meaning chinese government is correct in subsidizing particularly to factors that affect essential commodities like food/fuel/health...and hopefully legislating minimum wage that keeps a sustainable life for the poorest...thus business readjust...and better balance achieved albeit takes little longer...

and if/when world population start sharing similar cost/opportunities/markets...then loosening the reins slowly until market needs no further control...meaning its reached sustainable balance...

no government by putting business/economic growth as higher priority than basic needs of the poorest...never accept starving children who cannot access education and health...

Posted by Sam said, Saturday, 2 August 2008 10:32:52 AM
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