So called, "Capitalism" and so called "Communism" in today world? It would certainly appear so. Last month's purchase of the computer business of IBM (nyse: IBM - news - people ) was by Lenovo, a Chinese state-controlled entity. The bidder for Maytag (nyse: MYG - news - people ) is Haier, a state-owned and state-controlled entity, whose chief executive officer is on the ruling Communist Party's Central Committee. Even though they backed away from their bid due to press pressure, the Chinese bidder for Unocal (nyse: UCL - news - people ) is state-run CNOOC, China National Offshore Oil Corp. (nyse: CEO - news - people ).

In CNOOC's bid for Unocal, its parent, is 100% owned by the Chinese government, and they reportedly supplied a $2.5 billion loan at a zero interest rate and a $3.5 billion loan at a 3.5% rate that is far below what could be arranged through private banks in a free market. Does this not put the rival American bidder, Chevron (nyse: CVX - news - people ) at a distinct competitive disadvantage? Isn't the merger of the state and business interests the working definition of right wing Fascism?

If so, should we be describing China as a Fascist right wing country instead of a Communist country?

China has been making public since the late 1980s about privatizing state-owned and state-run companies, yet little progress has been made in that area. Roughly 70% of the shares of the 1,377 companies listed on the Shenzhen and Shanghai stock markets are owned and controlled by the state.

It appears the Chinese system would be better described as State-Capitalism, and if this is the case, should our multi-national corporations be better described as stateless capitalistic corporations? And which structure has the competitive advantage?

Publius