China's Provincial Troublemakers

Just when China is about to sell off its state sector and expand its market economy, U.S., Japanese, and even overseas Chinese investors are complaining about broken deals, crooked courts, and no profits in their operations. A wave of incidents sweeping provincial China, far from the more economically sophisticated coast, is casting a cold spell on foreign investors doing business there. Unless Beijing enforces the rule of law in far-away provinces, China will eventually experience a fall-off in investment that will hurt growth.

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