The global ramifications of China’s economic crisis
From our UK edition
Whilst Britain’s Labour government continues its war on the price mechanism, Communist China wrestles with the ill effects of an extreme capitalist competition that it has unleashed across its own economy. State subsidies to various industries have encouraged such fierce price wars that margins have disappeared as quickly as protesters in Tiananmen Square, and left a glut of products unable to be absorbed by domestic consumers. Bulldozing through all normal market mechanisms has led to huge problems in the Chinese economy This is ‘Nei-juan’, the economic phenomenon that is wreaking havoc across China, but is almost unheard of outside the Middle Kingdom.
