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State capitalism in China: Of emperors and kings

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UK Only Article:  standard article Issue:  That’s all, folks Fly Title:  State capitalism in China Rubric:  China’s state-owned enterprises are on the march Main image:  20111112_WBD001_0.jpg WHEN China joined the World Trade Organisation (WTO) in December 2001, many people hoped that this would curb the power of its state-owned enterprises. Ten years on, they seem stronger than ever. President Hu Jintao can expect to hear about this at the Asia Pacific Economic Co-operation summit this weekend. Hillary Clinton, America's secretary of state, has warned stridently of the dangers of state capitalism. A Congressional report released on October 26th railed against the unfair advantages enjoyed by state-owned firms and lamented that China is giving them “a more prominent role”. Indeed it is. In a new book called “China's Regulatory State”, Roselyn Hsueh of Temple University documents how, in sectors ranging from telecommunications to textiles, the government has quietly obstructed market forces. ...

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