Author: goldengrove

China's economic reform: it's the politics, stupid.   [Copy link] 中文

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Post time 2012-3-10 05:16:34 |Display all floors
philo09 Post time: 2012-3-9 18:51
State controlled energy prices are essential to the success of the countries industries; allowing th ...

I agree about banking , but energy prices and etc what do you mean by that?

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Post time 2012-3-10 06:10:32 |Display all floors
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Post time 2012-3-10 07:12:19 |Display all floors
attilaattila Post time: 2012-3-10 05:16
I agree about banking , but energy prices and etc what do you mean by that?

The cost of energy to industry is as crucial as the cost of wages for success in exporting products. Fluctuating prices or increasing  the cost of energy would be detrimental to production for export.
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Post time 2012-3-10 07:30:43 |Display all floors
grb Post time: 2012-3-10 04:11
China keeps the price of gasoline too high and that adds to the costs of domestic demand.  In addi ...

The cost of energy effects the cost of production for industries is very important to a country like China that exports the largest part of its production. However the cost of energy is also important to everyone who uses electricity. Gasoline prices affect mainly individuals who in most cases can choose public transportation instead of owning a vehicle and driving. Since China has to import most of its oil the costs have to be reflected in the selling price of gasoline. The last time I checked on the profits being made by the countries oil refiners they were very low, and had often suffered months of losses because the government was limiting prices at the pumps. With the air pollution in the cities and the traffic congestion perhaps a lot of people should not be driving to begin with. Gas prices in Canada are above five dollars a gallon and Canada is an exporter of oil.
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Post time 2012-3-11 02:10:45 |Display all floors
philo09 Post time: 2012-3-10 07:30
The cost of energy effects the cost of production for industries is very important to a country li ...

You are missing my point.  If china wants to increase domestic consumption then it needs to allow gasoline prices to be competitive and also reduce toll costs.  99% of the domestic goods in China are transported via truck.  And the truck drivers are paying the higher fuel costs which gets passed on to the consumer.  The trucks will never be removed from the highways, so their pollution will increase.  It does not matter if the normal consumer drives or uses public transport, as that will not affect the prices.  All of the refiners are SOE's so who really cares if they making money or not?  The government will just keep supporting them.

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Post time 2012-3-11 08:18:06 |Display all floors
The government cares about whether SOE's make money but it also cares about the cost of fuel so SOE's can be forced to keep their prices down so that fuel prices don;t go crazy like they do in western countries; if they were privatized the prices would be a lot higher.
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Post time 2012-3-16 05:54:29 |Display all floors
from what i can tell SOE's distribute wealth better than private owned enterprises . and they punish those with their hands in the till sometimes.i would not like to see a china capitalist  society move any further towards capitalism.the only danger of large SOEs is the men in control fighting over the pie when by working together the pie can be increased.humans need very little but what they need they really need.
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