China S Common Sensical Free Market System

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China's way of handling financial crises involved the owners; the West's way is to use taxpayers money to bail out the blood sucking fat cats: 
The West thought the collapse of Evergrande would cause serious damage to China's financial system and shake the world's confidence in China, comparing it to even the collapse of Lehman Brothers for the US. To their surprise it did not happen the way they thought it would. 
China's way of handling it is so different. Some thought China would bail out Evergrande. But that did not happen. You don't do that in a free market. The US does not practise the free market the leaders claim they practise. China sent in a team of competent crisis managers to immediately liquidate the company's noncore and noncritical assets after due diligence and to pay off suppliers so that the projects could continue and the property buyers would be the least affected. Investors were also paid where possible. 
The regulators have gone one step further now, They have urged the Evergrande founder to tap on his personal wealth to pay the cmpany's debts. This would be an unthought of suggestion in the West, where taxpayers' funds would be used to routinely to keep the company afloat, on the premise of the risk of a contagion that could cause hundreds of thousands to lose their jobs. China is taking a different route., one that will make the other owners of huge companies to think twice about the way they are managing their companies.
Once again, the West have failed to understand China. And how her socialist principles have continued to value the welfare of her people instead of bowing to the pressure of the huge corporations that is so evident in the West.
The views expressed are those of the writer and do not necessarily reflect those of MMKtT.
By Syed Akbar Ali 

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