Saturday, May 16, 2020

The Paradox of the Tiananmen Square

The rise of China is proof that a world class free market economy can be created after destroying a popular pro-democracy movement. In 1989, the Chinese communist government sent troops armed with assault rifles and tanks to Tiananmen Square to massacre thousands of pro-democracy protesters. The Tiananmen Square massacre put an end to opposition to the communist regime, and China became a politically stable country. Having implemented free market reforms in 1979, China had been receiving foreign investments for a decade. After the Tiananmen Square massacre there was a giant leap in the investments coming into the country. The big corporations prefer to invest in countries which are being ruled by a strong and stable regime. In 2010, China overtook Japan as the world’s second-largest economy.

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