The Problem With State Capitalism in China

The Chinese economy poses two major threats to American companies in the U.S., writes Julian Zelizer. He says China's large array of state-owned industries and its willingness to use investments to incentivize specific kinds of research means that the state dictates the course of the Chinese economy. The consensus at a fundamental level is that it's utterly uninterested in how Chinese state-owned enterprises, known as SOEs, actually functioned, he adds.