David S. Eberly
Sourcing automotive components in China
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CHINA: "HK: Deals in the Pearl of the East". 12-page report by Ernst & Young Tax.
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backCHINAtalk January, 2010
When Chinese Entrepreneurialism Meets Western Economics
E.J. Heresniak teaches economics and business in Shanghai as vice dean of Shanghai Guanghua College.
The syllabus covers economics theory, curves, and calculations -- in which young people are interested despite the worldwide financial crisis.
The students are actually more concerned about India as a rival than the United States.
They are also curious about the free market's self-correcting "invisible hand," and point out that the U.S. government now steers banks and owns shares of General Motors and Chrysler.
To explain the disparity between practice and theory, Heresniak observes that economics typically overlooks the fact that people cheat.
In China, free market views have been aggressively adopted and entrepreneurship abounds.
The streets have ample mom-and-pop stores, for instance, and businesses sell such things as stone, custom-made wedding dresses, oil paintings from photos, and money changing services.
China has a mixed economy comprising central planning, government enterprises, and a free market.
The approach is not perfect but still enables many people to strive toward upward mobility.
Source: GLOBALITY Magazine - GAI
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