Riddle me this.
A “developing” nation of 1.3 billion people, a country that is supposedly the “engine of growth” for “a new era” in the world economy, stops encouraging foreign investment in its local car manufacturing industry.
Meanwhile, a “developed” nation of 22 million people, a country that survives on digging huge holes and selling its coking coal and iron ore for steel production to said “booming” nation, not only actively encourages foreign “investment in” (read “ownership of”) all its vital industries (agriculture, mining, manufacturing) … it gives $25 million to the world’s biggest (foreign) car maker to build a car it was going to build anyway … sends billions in “stimulus” overseas to buy carcinogenic pink batts and crappy flat screens … and all the while, its Treasurer constantly bleats his continued expectation of a “huge pipeline of investment” to salvage the nation’s savaged finances.
Tell me … which of these two nations’ politicians are best serving the long term interests of their own people?
China will stop encouraging foreign investment in car manufacturing to allow for “healthy development” of a market that saw sales growth plummet to a tenth of last year’s pace.
The change ends seven years of foreign-investor benefits including reduced tariffs on imported plant equipment, said Jenny Gu, a senior market analyst at LMC Automotive in Shanghai…
SAIC Motor Corp., the nation’s largest listed automaker, rose 4.1 percent to 13.88 yuan in Shanghai trading today, it’s biggest gain in almost two weeks…
The nation’s automobile manufacturers association estimated that 2011 deliveries may grow by the least in 13 years as a rollback in policies aimed at encouraging buyers curtailed purchases.
So, China doesn’t want more cars produced? Because a dramatic fall in sales is another red flag that the “China bubble” is bursting?
Or, they just want to guard their own economic destiny?
In either conclusion, by contrast our own politicians are made to look exactly like the short-sighted, self-centred, traitorous sell-outs that they really are.