Peak China updateDecember 19, 2012
Read the blog Monsters Abroad for a good discourse on the challenges facing new Chinese Premier Xi Jinping. The Chinese model of an authoritarian, state-run economy has many admirers in the US, but it is hitting its natural ceiling, as the entrenched state-business interests resist reform that threatens their position. State management guarantees monopolies and creates such power centers – this is the flaw of centralized, managed economies. The system lacks the ability to generate natural and internal competitors to challenge these interests.