Keyu Jin

I think that going to China makes all the difference.

Go dig deep and don't just go to Beijing and Shanghai.

Another big misunderstanding and a fundamental one is that people somehow think that the state suppresses the private sector.

It's not at all as simple as that.

For the most part, if we look at the local government's incentive system, they want to help the best private companies, which are the most promising, because it makes them look good.

It adds to their GDP, it adds to the jobs, investment.

They are so helpful to these private companies.

Actually, I know many of these local government officials working tirelessly day and night, especially in bad times, to coordinate between debtors and creditors and to kind of smooth out and to find relationships with banks.

They want to help these private companies because, again, their incentives are aligned.

Deep Seek is a private company, by the way.

So it has done the country proud.

And why would the state want to go and suppress these private companies, which ultimately is kind of a beacon, represents a beacon of success for China?

Right.

Now, on how much freedom they have, it's really ranged from too much freedom, that's part of the problem, where you have defense companies buying art auction houses, real estate companies like Evergrande buying soccer clubs, doing EVs, companies investing in real estate that has nothing to do with their core business.

That's how much latitude we're given to private companies.

And there were consequences.

They were not reined in.

And then you go to the other extremes where they're scolded, they're reprimanded, they're reined in, and they're kind of folded into submission.

So that is the whole spectrum.

You have the whole range.