Capitalism in China

Changzhou local time Thursday 10:34pm

As I make my way across various parts of Eastern China, I have made some observations of the business climate in this still-communist country. While I have seen signs that capitalism is alive and well and that China is definitely on its way to becoming a major financial superpower, I have also seen signs that certain remnants of communism still remain.

Before we left Shanghai yesterday we visited the Oriental Pearl TV Tower and had an amazing view of this city from its observation deck. One of the things I noticed as I looked out at the downtown financial district with buildings decorated with names of major financial firms was how much construction was going on in that area. But along with signs of capitalism, I have also witnessed some of the negative externalities associated with it. On our way out of the Oriental Pearl TV Tower, I passed by a bunch of gift shops on the bottom floor and one of them was selling chilled cans of Cola-Cola for 18 Yuan. This equals approximately $2.50 USD and has to be the most expensive can of soda I have ever seen for sale in my entire life.

Earlier today as we made our way to Changzhou, we passed by a gas station with a significant number of vehicles waiting on line. The tour guide explained that there was a gas shortage caused by the government setting a price ceiling for which gas stations owners could not surpass in selling their product and that the night before, our bus driver spent two hours waiting on line for gasoline. I was quite shocked to hear that China still has such price control over a product as crucial gasoline. Then again I thought about how some Americans have reacted to the recent high gas prices and I realize maybe the Chinese aren’t that much different than we are after all.