Unfortunately, many of China's wealthy elite disapprove of the influence of the state economy. Surveys show that as many as half of all Chinese with over 10 million yuan in assets plan to emigrate from China. Free market advocates think that private markets and their search for profit should drive the economy and determine most investments. However, if this dogma became dominant every downturn in profits would drive millions into poverty. This is what we have seen in advanced capitalist countries since 2008.

Knowing when to draw the line between the benefits brought by the market and capitalist investment based on profit, and the need for development and investment to serve the long-term needs, aspirations and interests of the majority, lies behind China's staggering successes in the last 15 years. There is a great deal of talk in the Western press right now about how China is finally entering the long-predicted down-wave, where uncontrolled borrowing and investment will come to a grinding halt and some even predict that China will be overtaken by India and will suffer Japanese style long-term stagnation.

Providing that bold and radical policies to reduce inequality are followed through on -- including the vast public sector housing programmes and the national urbanization plan designed to radically improve the lives of 300 million people by 2020, there is no reason why the bursting of stock-market or property bubbles should drag down the economy. The low-cost public housing provided to about 100 million people during the last five years is a rock solid material foundation for the social base of support for the Party and the state.

However, to capitalize on this groundwork, peasant-workers and other migrant workers must not only benefit from plans made in their interests but must also become actively engaged in shaping their future living, social and cultural environment.

The writer is a columnist with China.org.cn. For more information please visit: http://china.org.cn/opinion/heikokhoo.htm

Opinion articles reflect the views of their authors, not necessarily those of China.org.cn.

Go to Forum >>0 Comment(s)