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What I don't understand is that since Beijing is also the center of government, how is it that they are not showing more self interest and fix the situation. It's really a paradox.

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The Chinese elite are showing plenty of self-interest. They have an entire infrastructure of purified air to breathe:

http://www.nytimes.com/2011/11/05/world/asia/the-privileges-...

That's an amazing display of hypocrisy by government leaders who usually keep right control over PR. I'd be unsurprised yet impressed to learn that the company that makes air purifiers for the ruling class, and then publicly advertises that, was a CIA operation to foment a rebellion against the tyrannical government.

I see it as completely unsurprising, and would be equally unsurprised to hear of this in a capitalist country.

Is organic non-growth-hormone corn-syrup-free food that is too expensive for the poor a socialist plot?

If China is anything like India, corrupt elite are interested in things like money and power rather than quality of life. long term health, etc. Most people want to live in an urban environment inspite of traffic problems. Its just the mindset. Pollution doesn't kill you overnight so they don;t really care.

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