Capital Allocation by the Chinese Government

Felix: For BYD to succeed, they need the margins of those affordable luxury, luxury vehicles. Felix: If they pull that off and it's a credible luxury car with real power, man, that would give me even more confidence that they could build something long run. But based on our previous conversations, Felix, I know the critical question is going to be, will you be able to contact a dealer and get a car? Yes. Let me hear. Where does capital actually flow in China? Who gets it? Who doesn't get it? And the story, I think, is really sobering. The data show that once you receive subsidies, your productivity falls relative to everyone