China's Volatile Experiment

China’s Volatile Experiment by Doug Bandow, Foundadtion for Economic Education

With a flagging economy, can the PRC return to equilibrium?

BEIJING — Mao Zedong, China’s “Great Helmsman,” died four decades ago. Only after his murderous reign finally ended could his nation move forward. Dramatically.

The old dictator and his cronies wouldn’t recognize China’s capital today. Beijing has become a sprawling metropolis. It mixes high rises of dramatic architecture with squat structures of modern power. Night clubs and fast food restaurants. Endless traffic jams highlighted by luxury autos. Prolific advertisements for Western goods and finely attired Chinese “princelings.”

Shanghai’s transformation is equally dramatic. Always more international and commercial than Beijing, it has become a world financial center. The Bund, or waterfront in...