China Eyes Stimulus Targeted at Boosting Consumption - China Real Time Report. China misses housing construction target. China fourth-quarter GDP grows 8.9% Growth is now China’s top policy concern. Lkr2012130. Insight: Why China can't and won't save the world. China’s central banking gold medalist | beyondbrics | News and views on emerging markets from the Financial Times. The weakness beneath China’s rise. Red Capitalism By Carl Walter and Fraser HowieJohn Wiley & Sons, 19.99 ($29.95) The financial crisis has delivered a heavy blow to the American model of capitalism.
Chinese officials do not hesitate to trumpet the point as they rejoice in the shift in the balance of economic power to Asia. Yet there are questions about how well their own model stands up to scrutiny. In Red Capitalism Carl Walter and Fraser Howie, both long-standing experts in Chinese banking and securities markets, ask quite a few; and their conclusions are unflattering. There are, in effect, two Chinese economies. One is dominated by foreign-owned and family-run private companies that generate phenomenal growth mainly in Guangdong and the Yangtze River Delta.
These two areas, which operate a free market form of capitalism not unlike Britain’s in the 19th century, attract 70 per cent of China’s foreign investment and contribute more than 70 per cent of exports, albeit with the help of a manipulated exchange rate.
Hopes for fresh Chinese reforms fade.