What obstacles are there to the increase in connectivity?
There are two main obstacles which need to be overcome:
1) Law, the recent firm crack down on corruption against the State must be extended to encompass the increasing growth of the private sector. A fair business environment, guided by the law as by the market is obviously an essential element in the expansion of economic productivity. Furthermore, in order to take full advantage of China's accession to the WTO, foreign investors will to a large extent accelerate the development of new services and catalyze the modernization of a wide number of industries. In addition to bribery and fraud laws, strong and fair anti trust guidelines are needed to ensure competition in emerging industries and to lay down a fair field of play for new entrants in various markets.
2) Risk of International Instability, as the potential for the widening of the income gap becomes a more urgent reality. Current policies regarding the development of the west of China must continue while a strong hand guides the economic ship of state through what are sure to be turbulent waters in this regard.
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