tied a bow around and wrote a prospectus on'" (Zuckerman D6). The prospectus guaranteed a fifteen percent annual return on investments. In fact, the return will no doubt be less than that because of prevailing currency exchange rates and debt that the company will have to assume. To be sure, the problems of the Shandong Huaneng Power Development Company and the Shanghai Stock Exchange may demonstrate only the problems of an immature economy. Nevertheless, if China wishes to become a viable member of the world economic community, such shortcomings will have to be eliminated quickly. These apparent problems may also be the result of an economic system that is run by the state. Certainly, one thing that the CCP has attempted to do is create a market economy while retaining a state controlled system. This structure may be possible but it does have its critics. Steven N.S. Cheung, in an essay written in 1989, argued for the "creation of private property by mandate" (31), feeling that privatization in China would lead to necessary additional investment in the society's infrastructure and the establishment of a "judicial system that is based firmly on the principle of equality before the law" (Cheung, Steven N.S. "Privatization vs. Special Interests: The Experience of China's Economic Reforms." pg. 32-250). Echoing Cheung's sentiments, James Dorn saw problems in the areas of Chinese banking and finance. In this arrangement, Dorn argued, "the state controls the bulk of investment resources. The lack of a private capital market has handicapped economic development in China and hampered rational investment decision making" (43). In order to become a modern economic state Dorn argued for the necessity of circumventing "China's ruling elite who oppose the dismantling of state monopolies and who benefit from price fixing and non-price rationing" (51). Xu Zhiming also saw the necessity for a revamping of the Chinese system: "We must throw off the tr...
