From supportive partner to antagonistic rival?
WSJ: “Brazilian miner Vale SA has spent around $2 billion on a fleet of huge ships to carry its iron ore from Brazil to China. The problem: China won’t let them in.
Chinese regulators have cited safety concerns over Valemax ships, as the cargo vessels are called. But analysts and industry observers point to a different reason: opposition from a Chinese shipping-industry group dominated by a state-owned company.
The Valemax fight offers a glimpse of one of the biggest battles China’s new leaders will face as they take the reins of the world’s No. 2 economy this week. Economists widely agree that to achieve sustainable growth, Beijing must open its doors to more competition and shake up state-controlled companies.
But the effort will face considerable challenges in a country where the line is blurred between state-owned enterprises and regulators.State-owned enterprises and their top regulator have pledged an overhaul but also have defended their role in the Chinese economy. “This is a special characteristic of China and critical to the development of a socialist economy,” said Wang Yong, director of the State-Owned Assets Supervision and Administration Commission.
State-owned enterprises dominate businesses including telecommunications and banking, leaving consumers with only three mobile-phone operators and lending dominated by state-controlled companies. In the energy sector, just a handful of domestic companies control exploration and production. Foreign car companies must form joint ventures with Chinese partners and share important technology.”
via How China Has Blocked Vale’s Iron-Ore Megaships – WSJ.com.
CHINDIA ALERT: You'll be living in their world, very soon 