Saturday, September 10, 2005

The Fall of Communism?

A few days ago, I had lunch with a group of company directors. Amongst them was a person who was once a senior government official. He is now in the private education business and travels to China quite often. He pointed out that the newly rich and highly educated Chinese in China (the Chinese are all over the world nowadays) shun their fellow countryman who are less well-educated and certainly not rich. They would rather work with foreigners in their country than their countryman.

Indeed, China today is communist in name only. They are embracing capitalist thinking and approaches to advance their causes within the country as well as outside it.

Not too long ago, the Chinese government-owned and controlled CNOOC went to the heart of capitalism to attempt to acquire Unocal Corporation - the 9th largest oil company in the US. I wonder what Mao Tse Tung would have thought of it - victory of communism over capitalism in capitalism's own backyard? Deng Xiao Ping would, no doubt, have approved though - the colour of the cat didn't matter so long as it caught the mouse.

Coming back, the divide between the rich and the poor, the haves and the have-nots in China is growing. It struck me that that was why communism in China became popular in the first place. Taken to its logical conclusion, we may yet witness the second communist revolution about 20 years hence?

Food for thought.

Battle for Unocal
Uncharted Waters
China drops bid
What CNOOC Leaves Behind

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