China’s State Capitalism: the Real World Implications

Stanley Lubman writes for The Wall Street Journal, China Real Time Report, March 1, 2012

The need to better understand China’s system goes beyond abstract arguments about the future of the global economy. The continuing expansion of the state sector of China’s economy limits the private sector and favors state-owned enterprises (SOEs) over foreign companies in some domestic markets. As SOEs extend their investments abroad, nations in which China seeks to invest need to become more aware of frequent links between state ownership and state control.