Keyu Jin

But I guess what we're really getting at is it is a country that is moving from...

no rule of law or very little rule of law, very immature markets to something that is being gradually established, bankruptcy laws, corruption laws, rules and regulations on what's possible.

One interesting point is that in China, you ask the companies to innovate first and then you regulate after.

right?

So that has led to things like P2P platforms, you know, it's led to lots of kind of financial innovations, some of which has actually been very helpful and good, some of which had been disastrous.

But the intention to regulate after the fact is to really not slow down or hinder the innovation.

This is a very different approach from Europe.

You regulate first, and then, you know, companies have to work around that.

So the

This is why Chinese economy is so complex.

You cannot reduce it to simply a statement saying the state is unhelpful for the private or something like that.

There are certain sectors where this SOEs dominate, right, when it comes to national security in terms of energy.

But let's not focus on these few sectors.

By and large, most of the economy, if you actually admit to the fact that China is highly innovative and highly entrepreneurial, means that it must be the private sector that is driving the show.

In the West, they group these economies together as if they're the same thing.

No, it's not the same at all.

There's so many differences, so much more flexibility.

You can have dynamic entrepreneurialism at the same time have socialist characteristics.

And I think this is what China has been able to shape and mold, a unique model that balances between government industry and

between state coordination and market mechanisms and between individualism and communalism.