To protect their borrowers from collapse, the Chinese have hardly any choice but to continue buying up American treasury bonds. Nevertheless, Beijing is also taking advantage of the crisis to portray itself as an alternative to the United States and a future superpower. It is gratifying for the Chinese leadership to look on as the West reaches for solutions that smack of state capitalism.
China's leaders stand a good chance of winning this global competition, at least in the short term. After all, the planned market economy is their own turf. Furthermore, the Communist Party has no democratically elected parliament to worry about, one that could seek to influence its "market economy with Chinese characteristics." And they can practically order their state-owned banks to issue loans to companies, many of which are also state-owned.
It doesn't take much to convince the Chinese masses to spend their money, as they embark on an enthusiastic shopping spree in Anhui and other provinces -- particularly in the country's relatively backward western regions -- into which Beijing is currently funneling large amounts of government funds. "Jiadian Xiaxiang," or "Electric Household Appliances for the Villages," is the title of the campaign currently underway in China. The economic stimulus program is straightforward: Buyers must identify themselves as farmers. After purchasing their new television sets, refrigerators, washing machines or mobile phones, the customers receive a 13-percent rebate on the purchase price from their local tax offices. Beijing is using similar government stimulus programs to boost car buying. A tax imposed on the purchase of certain small cars was cut in half, bringing it to 5 percent. The government is spending about €560 million ($755 million) in the hope of stimulating sales of vehicles in rural areas. And it seems to be working. In March alone, the Chinese bought more than 770,000 new cars, a 27-percent rise over the previous month and a new record monthly sales figure. (Wieland Wagner, SPIEGEL)

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