Since 1953, China government runs the country with a series of "5-year plans (五年计划)." The 10th one ended 2005 and the 11th one, called the "11th 5 (十一五)" started in 2006. This is the most important rhythm, politically and economically, for this country.

(The 1st 5-year plan started in 1953 but lasted only few years. The 2nd one started in 1956 and ran the full length to 1960.)

The high-level concepts and strategies were pronounced late last year. Starting this year, every levels of government will demonstrate their alignments to the central plan with goals, legislation, budgetary actions, and various administrative initiatives. It is like watching an athlete warming up before the match — shaking arms, stretching legs, loosening neck, twisting torso, and stepping into the position.

Anticipation is exciting. Observing the solidification process is fascinating. News agencies and barber's shops argue with each other on the finer points in interpreting various statements and gestures. The stage for this complex messaging performance is the national summits.

People's Great Hall, right on the Tiananmen's Square, houses two summits every March. The 1st one is for the Chinese People's Political Consultative Conference (CPPCC) (中国人民政治协商会议 or 全国政协). It addresses pretty much every aspects of the nation's operation. Sometime they simply comment, frequently they submit proposals that are similar to legislative initiatives. This year, they made over 5000 proposals. The majority of those proposals became laws. Council members give many signals and observe the public reaction to fine-tune the implementation in the forms of public policies. They also subtly steer the nation's attention on the key subjects.

With only few days' rest, the National People's Congress (NPC) (全国人民代表大会 or 全国人大) follows. Here the policies, laws, and decisions are pronounced.

(The traffic is usually impossible around Tiananmen's Square this time of the year.)

The National Bureau of Statistics Chief, Mr. Li DeShui (李德水）, happens to be a council member too. He made international news recently with the prediction of China's GDP growth be near 10% for the coming 5 years. During the Council session, he made a statement, after a private session to the most senior members of the government, that signals a possible shift in China's foreign investment policy.

Mr. Li noticed that foreign entities recently acquired China companies in a questionable style. They target the market leader with high profitability and demand 100% ownership. After the acquisition, they either close it down or merge it into the parent company's supply chain. China ends up losing its strongest player in the market.

The style is called "decapitalization" — referring to the removal of the local industry's "head."

This is no less than invasion at national level. Instead of guns and soldiers, it is with money and MNC (multi-national corporation) expertise. "What the point of high GDP growth," questioned Mr. Li. "If we are left without competitiveness?"

But how about when Lenovo acquired IBM's PC division and TCL bought Thomson? Shouldn't government stay out and let the industry guided by the invisible hand of the market? Why the unfair and one-sided treatment?

China's goal is to become a dominant player in world's economic stage. Before they are accepted into G7 and share the lime-light with USA, Japan, and Germany, I guess they deserve a bit "affirmative action" treatment at country level. Can you blame them?