From the Milken Institute’s conference in Beverly Hills, the Wall Street Journal‘s Andrew Morse reports that
Free-market capitalism, like that practiced in the U.S. and U.K., and Chinese-style state-led capitalism are growing more similar, while European-style capitalism continues to struggle amid high expectations that governments on the continent can continue to provide generous social welfare programs….
Niall Ferguson, an economist at Harvard University, said China was increasingly allowing free market forces to work in its economy, the world’s second largest, a move that other economies would likely emulate. Advanced western economies, meanwhile, are moving toward more government participation.“China is leading a shift away from the state,” Mr. Ferguson said, adding the developed world is moving in the “wrong direction.”
Mr. Ferguson tempered his remarks by saying it was unlikely that the Chinese economy would look like the U.S. economy any time soon.
The last observation must be a Briton’s understated humor – China’s economy won’t be as free as America’s until China is much freer generally (even if not as free as America).
More liberalized is better than less so, but China’s not a larger South Korea, nor is she likely to soon become one – it may be a time far longer, really, than any time soon.