Sunday, January 29, 2012

When Communists Confab

When the Chinese Communist party meets, the reports before during and after are circumspect.  the October 2011 meet was significant for it was the last before the change of leadership.  Whole lotta jockeying for position.

But I was told sometign I think is more interesting about the meeeting, or a point that in fact has been reported, but may be more significant than noted.  The BBC says:

He said the economic achievements of the last 30 years could be lost without "institutional" changes.

My correspondent notes that the chaos that foreigners experience and complain of in regards to trading with China, too flexible rules, whimsical contract adherence, disorderly market may be indeed painful to the 2 or 3 % of say the US market that is engaged with China, but those same problems aggravate the 100% of the Chinese in China who must endure the same problems.

He noted a fact that is well known, but significant in relation to the above meeting:  in spite of having on quarter of the worlds population, there is not a single worldwide Chinese brand name.  Not one. And within China, there is not a single brand trusted in China.

Even Apple Computer had its entire stores copied, with employees hired, ones who believed they were working for Steve Jobs.  This is chaos.

How this came to be, what the Communist Party plans to do about it, what is likely to happen, and what it means to those who trade with China (and to those who don't),  I'll be reporting on over the next few days.



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