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whom capitalism hurts. This mix of socialism and capitalism provides the incentive and rewards for effort and innovation, yet provides a safety net for those who are hurt by the system.

With the advent of outsourcing in international business, Chinese corporations have become heavily interdependent on global trade to make money. They are a key member of the Dell computer supply chain, and currently provide a great deal of outsourced work for Japan, their former enemy. The old saying "politics makes for strange bedfellows" could perhaps be reworded to "Global economics, supply chaining, and outsourcing makes for strange bedfellows" in the light of modern technology. Money truly appears to be the bottom line, as the Chinese are willing to put aside old hurts from the Japanese invasion to make money from their outsourcing opportunities.

Ever since China got Hong Kong back from Great Britain, the Chinese have used it as an economic model for more of its port cities. It seems as if the economic shot in the arm provided by Hong Kong woke up the Chinese government to how capitalism might not be evil after all. One cannot suppose that the Chinese government revolutionized economically overnight or that the businesses with vested interests in Hong Kong stood by during the merger process.

Naturally the business leaders in Hong Kong started lobbying the Chinese government the moment they saw Hong Kong reverting back to Chinese control! It is very hard for businesses to change horses mid-stream, and it was in their best interest to continue using Hong Kong firms with whom they had established relationships and trust than to look elsewhere for that aspect of their business. The business leaders were also wise enough to see the opportunity in the obstacle, as Hong Kong reverting to Chinese control would open the door to the gigantic Chinese market. While the business leaders knew they had a formidable obstacle in the form of communism, they reacted as all excellent CEOs do: they rose to the challenge. Because of their lobbying efforts, Hong Kong remains a strong world economic presence, and more of China's cities are opening up to the capitalist business model.

As the 2008 Olympics approach, business leaders within China and without are licking their chops at the prospect of improved trade and profits. These business leaders are using the Olympics to foster international goodwill that will improve the economy of all parties involved. The Chinese business leaders are lobbying for more economic freedoms to expand their business locally and internationally, and the international firms are hoping to expand their business within China.

The Chinese revolution in economic behavior towards capitalism will have a strong corrosive effect on communism. As China opens its doors for the world during the 2008 Olympics, the government will see the positive effects of capitalism and how political changes could improve their business interests. While the changes will not be immediate, the overwhelming proof of the benefits of capitalism and the corresponding necessary political processes will change China's political views and bring them towards a more democratic and capitalist state.

Learn more about this author, C. M. Erickson.
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