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The Reason Why Private Owned Economy Is So Hard to
Date: 5/31/2006 2:02:01 PM Sender: By Qinghua Huang

                  The Reason Why Private Owned Economy Is So Hard to Develop

                                         By Qinghua Huang 10/26/2005


      The state-owned enterprises are certain to be destroyed by corruption and management incapability.  When private economy is developed, there will generate a huge capitalist class.  The class will propose politically at some stage.  This is the direct reason for developed nations to build up democracy.

      Chinese dominators keep their privileges and let competent foreign capitalists handle the economy.  These foreigners take care of efficient use of resources, revenue from tax, employment, and economic issues.  The massive people being dominated can only be workers.  Enterprises owned by the Chinese seek their space in between.  Irrational polices have been made to force Chinese capitalists into dilemma: If they obey all the rules, their ventures will die out of the business.  If they do not obey the rules, their operation will be illegal.  Yet foreigners enjoy favorable policies.  This is why many Chinese private ventures become joint ventures.  The entrepreneurs’ hearts are bleeding:  What the hell is this giving 50% of the shares to others?  





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