Creative destruction

A Chinese company's surprising purchase of the Hummer brand will surely make the bankruptcy of General Motors Corp an even hotter and more relevant topic in this country.

Domestic users may continue worrying about disruption in after-sales service even though GM insisted that its operations in China would not be affected. And, Chinese carmakers are keen to re-examine the domestic market for challenges and opportunities arising from the fall of this global auto giant.

However, for Chinese policymakers, the more important thing is to read it as a case of creative destruction. After filing for bankruptcy on Monday, the CEO of GM claimed that today marked the beginning of a new GM dedicated to building the very best cars and trucks. While that kind of optimism may be far-fetched, the bankruptcy of an American corporate icon like GM, in itself, can actually mark the end of one chapter of the global recession.