That central planning has caused massive economic distortions and is now rattling the Chinese leadership.
Hans Palmstierna emails and points to a report from UK's The Telegrapgh:
Interesting rumours, I'd say, even if they are untrue. Something sounds like its brewing underneat the surface.From The Telegraph:
China has arrested six people and shut down 16 websites for spreading rumours that the military was preparing to launch a coup.
The arrests are a sign of the ruling communist party's (CCP) extreme nervousness in the wake of an extraordinary few weeks in which an unusually public power struggle amongst the party elite has seen the one-time politburo contender Bo Xilai deposed.
Rumours that a coup was imminent began spreading after Mr Bo was removed from his position as CCP chief of the southwestern city of Chongqing two weeks ago. Posts on microblogs claimed that armoured personnel carriers and tanks had been seen on the streets of Beijing.
China's state news agency Xinhua reported late on Friday that six people are under arrest for "fabricating or disseminating online rumours".
Sixteen websites have been closed for posting reports of "military vehicles entering Beijing and something wrong going on in Beijing". An unknown number of people were "admonished and educated" for their part in spreading the rumours, according to police in Beijing.
"The rumours have "caused a very bad effect on the public," said a spokesman for the State internet Information Office, while the websites were shut down for not acting to stop their spread. Two of China's most popular microblogging sites, weibo.com and qq.com, were also "criticised and punished accordingly" for their failure to prevent the rumours circulating said the spokesman.