Fearing Unrest, China Tries to Rein in Unbridled Capitalism

With a fast growing older population, increasing pollution and environmental damage and an absence of a real socialist health system, Beijing is now seeking to check this - and now it is finally admitted by the Chinese leadership – unbridled raw capitalism and quell the alarmingly growing social unrest.

Not too long ago the nouveau-rich Chinese capitalists could be seen standing in lines several hundreds of yards long. They were registering to purchase luxury condos in Shanghai – such was the demand. The prices were rising and these rich Chinese were buying third or even fourth condos. Speculation fever was rampant and unchecked.

The Central Chinese authority-planners are extremely worried and are trying to check this spiral, and fearing an impending economic crash, thus the banks would be ruined because they have amassed billions in stressed debts.

China now uses a quarter of the world’s cement and steel, and almost a third of its coal. The country has long succeeded Japan as the world’s second-largest consumer of oil.

There is now immeasurable environmental damage through air and water pollution that are fanning the serious problems. Even the Deputy Minister of the Environment, Yue Pan is predicting the end of the so-called "economic miracle."

Under the leadership of Mao Tsetung, the Chinese state-owned companies provided for the sick and elderly. But now the privatization means that close to 800 million Chinese have to fend for themselves.

Because of privatization, more and more Chinese foreign owned and managed companies have their own electrical generators, leaving the majority of Chinese population with dramatic power shortages.