May 15, 2006
Great moments in markets
Chaos hit the Shenzhen border late last week, all thanks to a sub-market subsidy and canny traders. Picture below the jump, report from the SCMP:
Fuel shortages in Shenzhen brought chaos to the Huanggang border checkpoint yesterday, with a queue of container trucks several kilometres long all but bringing traffic in the area to a standstill. A Shenzhen government spokesman denied there was a fuel shortage, but truck drivers complained they could not fill up in Shenzhen or Dongguan.The government is claiming there is no shortage, and they're right. There's enough fuel, but thanks to the cap on pricing the station owners are refusing to sell. Just chalk it up to another lesson in markets for our Communist friends.
posted by Simon on 05.15.06 at 08:37 AM in the China economy
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Forget our communist friends, I wish this lesson would reach a few of our (US) congress friends.posted by: Stephen Macklin on 05.15.06 at 09:45 AM [permalink]
This was happening in Guangzhou about 8 months ago. LONG lines all over the city, as everyone was vying for a tank of gasoline. Same issue...stations were selling at a loss, so they were rationing the amount anyone could purchase at any given time.