State Driven or Grassroots Driven Growth, that is the question

If the United States has Republicans and Democrats, then inside the Chinese Communist Party you can see the same sort of thing.

Bo Xilai in Chongqing pursued the government as your savior model like Democrats do in the States and Wang Yang in Guangdong favors local answers and private led innovation much like Republicans do in the States.

The whole system is, however, left of the U.S.

Bo Xilai’s removal is good news for the Guangdong model backers.

Business Week had a good explanation of this last month that you can find here.

Private investment by Westerners in China no doubt favors the Guangdong model with only a few Westerners backing or seeking to benefit from the Bo Xilai model.

Just how far China will lean right over the next 10 years will be strongly influenced by the change over that occurs at the end of this year. We should all keep our eyes open especially if we are in sensitive industries.


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