This
article does not talk about business directly, but rather indirectly through
foreign policy and political reform. In the new future, China’s leadership will
change and an important transition will take place as the older generation
passes the reins on to the younger generation. In the midst of this transition,
reformers in China are trying to take advantage of the change in order to change
government policy. The People’s Bank of China, the country’s central bank, “circulated
a ten-year timetable for the liberalization of capital markets.” This means
that it would be easier for Chinese entrepreneurs to buy foreign companies. It
would also open up Chinese stock-, bond, and property markets. In the past,
these reformers have had a hard time making themselves heard and not being
ignored by the Communist party, however on February 27, 2012, they were able to
recruit the World Bank to their cause as well. Together, these two entities,
with the support of a Chinese think-tank issued a report to submit a number of
major changes in Chinese policy.
This
article is interesting to me because political structure plays such a huge role
in business. In China where the government is Communist, it really creates
complications for businesses that operate there as well as for Chinese people
who are trying to get involved in international business. I believe that such
policy changes could have great results for the Chinese people and others
throughout the world.
3 March 2012
Josh Thompson
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