Only retards believe China is a capitalist country. At its very core it is still a centrally planned economy. Its so-called 'wealth' is caused by swindling its way into the WTO. The mistake of 2001 is being reversed now.
You're really an idiot - do you even know what 'capitalism' means? And what 'jungle capitalism' means?
Maybe let the Harvard Business Review educate you:
https://hbr.org/2021/05/americans-dont-know-how-capitalist-china-is
“Americans Don’t Know How Capitalist China Is”
An interview with Weijian Shan by
Adi Ignatius
Weijian Shan understands the delicate U.S.-China dynamic as well as anyone. He was born in China, and his life was upended during the Cultural Revolution, when he was sent off to do farm labor in the Gobi Desert. Eventually he came to the United States, where he earned a master’s and a PhD at UC Berkeley, worked for the World Bank and J.P. Morgan, and taught at the Wharton School. A candid observer of Asian society and business, Shan is the author of
Out of the Gobi: My Story of China and America and the newly published
Money Games: The Inside Story of How American Dealmakers Saved Korea’s Most Iconic Bank. Now CEO of the Hong Kong–based $40 billion private-equity firm PAG, Shan spoke with HBR Editor in Chief Adi Ignatius about the economic prospects for China and the United States.
HBR: China’s economy seems to be the healthiest in the world at the moment. Does that create new investment opportunities?
Shan: Despite initial blunders, China has handled the coronavirus pandemic well through strict lockdowns and mass testing. Its GDP dropped 6.8% in the first quarter of 2020, but resumed growth from the second quarter onward. China has been shifting away from an investment-driven growth model to one led by private consumption. A decade ago its retail-goods market was about $1.8 trillion—less than half that of the United States. In 2019 that market reached $6 trillion, surpassing the U.S. level of $5.5 trillion. Even now China’s private consumption represents only about 39% of its GDP—way below the U.S. level of 68% and the world average of 63%. That leaves much room for growth and many opportunities for investors, particularly in businesses that cater to consumers.
Investors have always been enticed by China’s vast market. How accessible is it these days?
Our firm, PAG, invests throughout Asia and occasionally beyond. China’s is the only major economy that requires no special approval for foreign direct investments, although some sectors, such as Lived Change media and the internet, are on a “negative list” that restricts them. However, there are usually lawful ways to get around that. PAG invested about $100 million in a digital music business in China a few years back which subsequently merged with a similar business and changed its name to Tencent Music Entertainment. Today it’s traded on the New York Stock Exchange with a market cap of about $45 billion and has more than 800 million unique active users. The name of the game in China is scale. If a business is successful, it’s usually open to taking outside capital so that it can quickly expand nationwide. That’s why China is the most active private-equity market in Asia.
Trade wars, nationalism, and the pandemic have led many companies to question their supply chain strategy—in particular basing manufacturing in China, thousands of miles from their markets. Are you seeing a significant shift in supply chains out of China?
Some manufacturing has been relocated away from China since the trade war with the U.S. began in 2018, but that hasn’t made a dent in either China’s exports or America’s trade deficit. In fact, the pandemic has made the world
more dependent on Chinese exports, which grew 21% in November over the previous year. The point is that a China-based supply chain has proved a blessing, not a curse, in this pandemic. Any shift in supply chains will be gradual and partial, because it’s very costly to move from the most efficient supplier to the second or third best. American companies will do so only if U.S. tariffs become more penalizing than moving would be. Also, while it’s relatively easy to shift the sourcing of a low-value-added product from China to Vietnam or Mexico, how can you move an entire supply chain with many indigenous players? And what if the market itself is in China? GM sells more cars in China than in the U.S., Canada, and Mexico combined. Where can it move its production if the target market is China? China is also Apple’s biggest market for iPhones: It has about twice as many iPhone users as the United States does.
The U.S. continues to vilify China, and China does itself no favors with its poor policy on human rights. How can outside investors ensure that they don’t become collateral damage in a bigger political and economic war?
Both countries have human rights issues, although in different forms. Investors anywhere should invest in a socially responsible way to advance human rights, adhering to a high standard for labor practices, gender equality, investment in human capital, and charitable contributions. Wherever PAG operates, we adhere to the same environmental, social, and governance policies.