The Fatal Flaw of Analysis of the Chinese Economy

China has liberalized its foreign investment laws in the last few years. US affiliates in China alone had over half a trillion dollars of sales just in 2018. There are several kinds of arguments that we need to look beyond formal ownership to understand capitalism more broadly, he says. The fatal flaw of analysis of the Chinese economy and its obsession with formal state ownership is it doesn't take into account how SOEs actually work.