The Hindu Business Line : Understanding China

Now and then one finds articles in media comparing India and China. Many Indians, including businessmen, bureaucrats and politicians, have visited China in the recent past. They have came back highly impressed. The politicians even promise to make Indian cities like Shanghai and Shenzhen. But mere promises and appreciation of China will not help.

Do the Indians who visit China actually study the mega-projects and how they are funded? Do they find out the nature and manner in which the State encourages manufacturing? And how the taxation system works at the provincial and municipal levels, as China too has a multi-layered federal system?

The trade associations and the Planning Commission should organise visits to China to understand in depth the working of the China Economy. Those who oppose FDI should understand that provincial government officers in China are evaluated on the basis of FDI brought into their province, the employment opportunities generated and VAT collected.

Sushil Mehra

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