American Socialism & Chinese Capitalism

On August 31, the Wall Street Journal reported that GM has entered into a 50-50 joint venture with FAW Group, a major "Chinese state-owned auto maker." GM is the major U.S. state-owned auto maker. The venture will add, according to GM China President Kevin Wale, a third assembly plant capable of producing 100,000 vehicles per year by the end of 2010. GM already engages in the production and sales of passenger cars and micro-minivans in China with other Chinese partners. GM's China sales during the first seven months of this year "soared 42.8% from the same period last year to  959,035 units." Why is GM, a capitalist firm, so successful in Communist China and a failure in Capitalist USA? Apparently, the Chinese learned from the economic failures of socialism while the US Congress learned nothing and actively intervenes in the decision-making of American capitalist firms, imposing environmental restrictions few of which would pass the economic test that benefits...(Read Full Article)