Part 4/7:
These systemic issues are compounded by entrenched political interests resistant to necessary reforms. Over the years, the Chinese state has increasingly tightened its grip on the economy, and this centralization of power raises doubts about the potential for genuine decentralization and economic democratization.
The Role of the State and Entrepreneurship
While some argue that Chinese entrepreneurs continue to thrive despite government control, the reality is nuanced. Entrepreneurs frequently find themselves beholden to local Communist Party officials, needing to nurture these relationships for operational success. This creates a climate of uncertainty where entrepreneurs are wary of sharing information or risking state reprisal.