[UPDATE: The Chinese government is now blocking web access to the NY Times as a result of this article cited below.]
We all know that the Chinese Communist Party owns companies that constitute the majority of GDP there. They are called state-owned commercial enterprises (SOEs). But its not the government so much as the Party.
Some don’t like Fannie Mae being owned by the government. Just imagine if the Democratic Party owned it, under the protection of the actual federal government. Or if the Republican Party was the owner of the Tennessee Valley Authority with a government granted monopoly. That’s China.
That’s why our “free market” and “free trade” thinking does not and cannot apply there. That’s why free trade does not and cannot work with China.
And party officials get very, very rich. Chinese Prime Minister Wen Jiabao is Exhibit A.
BEIJING — The mother of China’s prime minister was a schoolteacher in northern China. His father was ordered to tend pigs in one of Mao’s political campaigns. And during childhood, “my family was extremely poor,” the prime minister, Wen Jiabao, said in a speech last year. …
A review of corporate and regulatory records indicates that the prime minister’s relatives, some of whom have a knack for aggressive deal-making, including his wife, have controlled assets worth at least $2.7 billion.
I have said that China has a right to protect its national interests… and that the U.S. can and should protect our interests, though we don’t. However, its really the Communist Part of China, the leaders, and their families protecting their interests. They should not have the right to do that. It is crony capitalism enabled by communist dictatorship. It is modern medievalism. It hurts their country.
And it certainly hurts our country.
When will the U.S. Chamber of Commerce and Club for Growth stop protecting the Chinese party leaders’ interests in enriching Wen Jiabao’s family?