China’s state-run capitalism more crony than capitalist

The wages of a one-party, state-manipulated economy:

The spoils system, for all the efforts to keep a lid on it, poses a fundamental challenge to the legitimacy of the Communist Party. As the state’s business has become increasingly intertwined with a class of families sometimes called the Red Nobility, analysts say the potential exists for a backlash against an increasingly entrenched elite. They also point to the risk that national policies may be subverted by leaders and former leaders, many of whom exert influence long after their retirement, acting to protect their own interests.

Via ‘Princelings’ in China Use Family Ties to Gain Riches at New York Times.

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