China’s Contradiction

[via Yuvaraj] Stephen Roach of Morgan Stanley writes: “The real China exists at the provincial and local level — far removed from the Beijing-centric power network. Even after 27 years of extraordinary reforms, the real China remains very much a micro story — oftentimes at odds with the macro story that drives Western perceptions. This is one of those times…While economic control was close to absolute under the old model of the state-owned economy, that is not the case today under the increasingly marketized system. Power has been diffused away from the center, making macro control from Beijing exceedingly difficult.”

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Rajesh Jain

An Entrepreneur based in Mumbai, India.