“China Has Another 300 Years To Go…”

According to Zhang Weiying, an economist, that’s how long it will take China to get a market economy  . He was quoted in the Gaurdian in response to a case against an entrepreneur in China, Wu Ying.  According to the Gaurdian Wu Ying is facing the death sentence because her business empire failed and she has been charged with fraud and raising money outside the banking system.

The problems seems to me that the Chinese government want to have their cake and eat it. They encourage entrepreneurs like Wu Ying but are not prepared to support them as the  banks prefer to lend money to state- owned enterprises. This means that entrepreneurs seek capital from other sources,  private lenders who are looking for a better return on their money as interest rates from banks is so low. However in China it is illegal  to raise money from private lenders.  So its a catch 22 situation.

It’s obvious that the system is at odds with its ambition .  No amount of money on fancy PR can erase the brutality of a regime that holds out a carrot to its people but beats them when they bite.


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