There are two economic models that China has implemented through recent years and there is a battle stewing for which is best for the future of the Chinese economy: Guangdong vs. Chongqing. The Guandong theory is more relatable to the US model, it includes: capital-intensive, value-added industries and is more in favor of grassroots political reform. The Chongqing model is the more communistic approach and puts heavy emphasis on social equity. Each have benefits, but foreign investors are more hesitant to invest in a region that practices the Chongqing model for fear of investing heavily only to later be pushed out by local government.
The competition has lead to much confusion within China and no one has a clear direction of where the country is going. In the fall there will be a Party Congress, similar to the replacement of our Senators and House of Representatives, and the results will ultimately form the future for China's policies.
http://www.businessweek.com/articles/2012-03-22/chinas-dueling-economic-theories
Dallen Shakespear
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