They've been lifting the subsidies of late. Not long before you were there, gasoline was on the order of $2.70/gallon. Which, I will grant, is still high by Chinese standards, but nonetheless still a market intervention by about a third.
Not surprisingly, there were some distortions. They're stopping, but the distortions are still working themselves out.
Entirely with you on the public transport part, though.
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Date: 2008-07-31 06:52 pm (UTC)Not surprisingly, there were some distortions. They're stopping, but the distortions are still working themselves out.
Entirely with you on the public transport part, though.