When our economic central planners are getting it completely wrong, China only has to get it partially wrong to beat the pants off of us. They too have their Solyndras:
Since out policies are so bad, the Chinese can afford to pursue some bad policies and still win.
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Li's warning followed the failure of Shanghai Chaori Solar Energy to make a payment on a 1bn yuan (£118m) bond last week. The default was the first of its kind for China and widely seen as pointing to the end of 11th-hour government bailouts for troubled enterprises.But they are letting companies die, as opposed to USA, which keeps banks on life support, and so too automakers, and bigpharma, and big ag, etc...
The figures come as China's leadership says it wants to transform the growth model away from an over-reliance on often wasteful investment, making private demand the driver for the country's development.Imagine that! Even communists know something of which the capitalists have exactly zero sense - free market are the only hope.
Since out policies are so bad, the Chinese can afford to pursue some bad policies and still win.
However, figures this week revealed that Beijing is copying the Japanese tactic of ramping up public infrastructure spending to replace the steep slowdown in private sector investment. Fixed asset investment, a measure of government spending on infrastructure, expanded 17.9% during the first two months of 2014, the National Bureau of Statistics said.We need freedom.
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