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Posts Tagged ‘capitalism’

Opinion: Is It Time Magazine that doesn’t understand Capitalism or China?

November 4th, 2013 6 comments

consumer powerTime recently published an article titled “How a Starbucks Latte Shows China Doesn’t Understand Capitalism” on the attention the Chinese government appears to be bringing to the practice of foreign companies overcharging Chinese consumers. According to Time, the government in doing this shows it doesn’t understand capitalism, ought to back off, and let the market reach a proper price.

The article asserts:

The bottom line is this: Companies will price their products based on what the consumer is willing to pay. That’s nothing illicit. It’s simple supply and demand. If Starbucks lattes were truly overpriced in China, the Chinese wouldn’t be buying as many of them, and the American firm would not have been able to build a successful network of over 1,000 shops in the country.

If foreign companies are engaged in illegal practices, then they should be stopped. But meddling in the pricing decisions of independent private companies is another thing altogether. China’s leaders persistently promise to make the Chinese economy more market-oriented, liberalized and fair. Premier Li Keqiang recently committed the government to “steadfastly pursuing reform and opening-up with priority given to the stimulation of the market.” Interfering with the prices private firms charge Chinese consumers suggests that China’s officials believe that they should make economic decisions, not free markets. Read more…

Democracy Is Ruining Capitalism – Does China Do Capitalism Better Than America?

March 10th, 2012 18 comments

Slate/Intelligence Squared appears to be planning an interesting live debate on March 13 – with Orville Schell and Peter Schiff arguing for the motion in the title and Ian Bremmer and Minxin Pei against.

Details of the debate can be found at the slate and intelligence squared websites. The intelligence squared site – in particular – features a good and interesting set of articles linked under its research in depth section.

In anticipation of the debate, Schiff had this to say in an interview with Slate titled “Excuse Me, But Your Democracy Is Ruining My Capitalism”: Read more…

Eric X. Li’s “Counterpoint” Op-Ed in the New York Times – Debunking Myths About China

July 22nd, 2011 43 comments

Eric X. Li had a wonderful op-ed in the NY Times.  I really don’t know how he got a piece through, especially since all mine have been rejected. Anyways, hats off to him!  Here is his op-ed, with some of my thoughts scribbled throughout. Read more…

A Chinese view of governance and the financial crisis: An interview with ICBC's chairman

March 27th, 2009 17 comments

In response to Steve’ question on what is the difference between Chinese version of capitalism and American version of capitalism, I think there are many.  The most important, I think, is the respective role of government, market in running / in governing the economy.  Another important aspect, I think, is the goal of economic prosperity.  China takes a more “holistic,” perhaps results-oriented  view to economic prosperity whereas America tend to take (historically at least) a more “individualistic,” equal-opportunity point of view. Read more…