Li Na: An Economic Model to Follow

All eyes turned to Li Na, who won the tournament at Roland Garros. The economic sphere of Beijing has seized its success. While excited by the victory of the champion, people felt it was an economic phenomenon, it has dubbed “phenomenon of Li Na”. The system of elite sport in mainland China is more like a public company with monopoly. However, Li Na appears as an “private contractor”.

When the sport is run as a public company, the state takes care of everything, with officials at all levels who share gains in the end. A “private contractor” as Li Na must pay out of pocket any expenses incurred. But it’s Li Na, who decides how to participate and compete. When she won a victory, she simply thanked her husband and fans. In fact, when talking about the economic phenomenon of Li Na, people may also perform a comparative analysis between State-owned enterprises and private enterprises, and come to the conclusion that only the latter have a future and are able to help China’s economy.

Over the past year, the central government has expressed a lot of willingness to solve the problem of income distribution, but various reform projects have remained in the drawers. Why? Because the state fails to flatten the issue of public enterprises. In 2010, the limitation of funds and rising interest rates have been a blow to small and medium enterprises, while large enterprises have continued to grow. But that did not stop the advance of inflation. It will perhaps be necessary to increase the rigorous efforts and it will affect public companies, which are likely to voice their discontent.

Returning to the sport. In China, the idea of anything must be managed is not correct. In economics, it’s the same thing. Private companies should be free are tested indiscriminately. It is said that the authorities wish to strengthen their management of public enterprises and to support a bit more private companies. They should learn from the phenomenon of Li Na and reconsider the management of economy.

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