2012-08-23

China is cutting red tape

There are two economic trends in China. The short-term trend is bearish and the government may choose the absolute worst policies to deal with the economic slowdown. The long-term trend, however, remains bullish as the country continues to reform.

Guangdong gets pioneering role in cutting red tape
The State Council also announced a decision to cut or streamline 314 types of government approvals, mostly related to non-financial sectors, small business and private investments, following a meeting yesterday chaired by Premier Wen Jiabao. The latest clean-up is part of the central government's attempt to address over-regulation, which some economists have criticised.

...Hu Xingdou, a Beijing-based political commentator and professor, said the central government's support for Wang would increase the likelihood of him being given a seat on the Politburo's all-powerful Standing Committee in the top leadership reshuffle just weeks away.

"Wang is the most reform-minded senior official in the Communist Party, and the nod for Guangdong ahead of the party's national congress shows that he is likely to have won support from top leaders," Hu said.
I mentioned Wang Yang in Liberals aim to unleash new wave of reform. He was quoted as saying, "We must hasten the development of small government and a great society." Long-term investors should stay focused on the long-term trends and use short-term crises to open or add to positions.

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