ARC's 1st Law: As a "progressive" online discussion grows longer, the probability of a nefarious reference to Karl Rove approaches one

Monday, August 29, 2005

India or China? Not a Contest!

This story is a small indication why I don't think China has better future prospects than India. While India certainly has a socialist past, they clearly have gotten the picture that free-market capitalism is the best system to raise the standard of living for their population. Their experience as the largest democracy in the world and their willingness to allow dissent means that they will innovate and grow in leaps and bounds above their neighbors to the northwest.

All that goodwill, however, isn't paying off. Murdoch was testing the legal boundaries in China, where foreign TV broadcasters cannot distribute their programming without government permission. Uniformed officers raided News Corp.'s Beijing offices in June and confiscated financial records and equipment. Calling the investigation a "big and serious case," the government is focusing on a company registered to News Corp. employees with regard to its role in leasing satellite-TV channels in China. And China's State Administration of Radio, Film and Television terminated a deal that put News Corp. programming on a nationwide satellite channel based in the remote Qinghai province. Executives at Hong Kong's Star TV, a subsidiary of News Corp., declined to comment.

At some point, foreign investors like Murdoch will recognize the risk of political unrest in China (which is likely in my opinion) and either pull out or add such a risk premium to their investments that India and surrounding countries will become more attractive. And if the government is raiding your office and confiscating documents and/or forcing you to engage in a partnership with some state-owned entity, would you continue to invest in such an environment?

Your Co-Conspirator,
ARC: St Wendeler