China’s problems are not merely economic, but have a political dimension. Although it is often described as a rising ideology, “State Capitalism” is already a mature concept, as China has been constantly growing for some twenty years now. We now see problems that are typical of state-led projects: efficiency and thoughtful investment decisions are often sacrificed on the altar of personal prestige and apparatchik stubbornness. The presumption of state planners is that “they know best.”
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