Today, probably the biggest phenomenon happening in China’s business is the rise of China’s private sector and as part of that, entrepreneurship and innovation. China’s economy has previously been dominated by major SOEs.
They are resourceful, often protected by preferential policies and enjoy certain privileges. Some western media called China “State Capitalism” which carries a somewhat negative connotation—a capitalist way where the government plays a major, directive role. Is that right? It is, but it is not the full picture.
Many people outside of China were surprised last year when Alibaba went for an initial public listing (IPO) in the New York stock market as the largest valued initial listing. Jack Ma, the founder, appeared on the front pages of New York Times, CNN and other leading media, catching lots of eyeballs.