CHINA SHOULD NOT MEDDLE WITH MARKET PRICES (int'l edition)
I read with interest ''So much for competition'' (Asian Business, Nov. 30). Recently, there has been a queer discussion in Chinese newspapers about whether Chinese industrial associations should interfere with the prices in 21 industries. I don't think the interference is fair. China is marching toward its market economy and government should keep away from making any decision that might influence normal practice in enterprises. Price competition is unavoidable and a must in transforming most state-owned enterprises into independent, modern businesses.
Without some pain, how will an enterprise struggle to improve its technology and management? How can such enterprises compete in the international markets? This is a lesson China must learn and tolerate. There is a long way to go for Chinese enterprises to be fully independent.
Updated Dec. 10, 1998 by bwwebmaster
Copyright 1998, Bloomberg L.P.