29 Jan '12, 10pm

When state capitalism meets bamboo entrepreneurship

Most observers would agree that in China, the government is far more hands-on in terms of shaping commercial activities than in the Western world. Home-grown, emerging multinationals such as Lenovo, Huawei and Haier are not only dominant players in substituting imports, but they are also groomed to become national champions, competing in the global market. With its state-owned enterprises operating in industries that the government deems strategic, China appears to be an archetypical example of what state capitalism entails. Yet, in reality, millions of privately-held, small firms thrive alongside these state-owned behemoths. No one knows exactly to what extent such unplanned entrepreneurial activities contribute to the country's fast-growing economy. But collectively, private firms employ most of the country's workers. Less than 15 per cent of the total workforce is emplo...

Full article: http://www.todayonline.com/Commentary/EDC120130-0000006/W...

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