China"s communists embrace privatisation in the 21st century

In September 2024, Guo Ping visited his hometown of Laixi in eastern China and discovered that the local government had sold several state-owned assets, including two reservoirs. This decision was made in response to financial strains faced by Laixi and the nearby port city of Qingdao, prompting officials to seek new revenue sources. The privatization of significant regional infrastructure reflects a broader trend of economic challenges within the area. Guo Ping perceives these asset sales as indicative of a gradual economic decline, raising concerns about the long-term implications for local governance and public services. The situation highlights the complexities of managing state assets in a transitioning economy, where the balance between privatization and public welfare remains contentious.