China's Economy Is Not a Competitive One

State-run companies anywhere in the world are inefficient and not the innovators. Yet china is looking to compete in the 20th 21st century excuse me on everything from cyber to the internet, nanotechnology. How do you reconcile this? Are we ever going to get to a place where the chinese government recognizes they need to pull back and let the private enterprise flourish in china even if it's not us companies?