China is a good example that an economis system that is part capitalist and part socialist doesn’t work. The Communist Party still controls the banks and the allocation of capital. The Party supposedly for political purposes directed huge amounts of capital toward a nationwide construction frenzy. Today China boasts huge complete cities of apartments, commercial and retail space, and community facilities that sit empty, deteriorating and have no return on investment. Over one trillion dollars has been squandered. Also most loans made by those state directed banks are based on overvalued urban real estate valuations. In short China sits on the granddaddy of all real estate bubbles. In many ways it is a tragedy that the Party has squandered the wealth created bt the underpaid people laboring in China’s export oriented factories.
Slave labor means high profits for government-owned corporations. China has little to worry about.