---
title: "SU-SOC175 JAN212025"
source: https://www.jemoka.com/posts/kbhsu_soc175_jan212025/
date: 2025-01-21
---

Diminished State Capacity China&rsquo;s central government has very few officials Uses a lot of meetings to communicate information from top to bottom. China is generally more more understaffed because lack of people.
Information Control in China Information control is required to ensure cohesion in a super decentralized environment; and thus messages deemed divisive or destabilizing are restricted.
China&rsquo;s restrictions are highly unusual since US trade partner + China + Russia didn&rsquo;t do this.
China&rsquo;s State Economic Role two key properties high proprtion of assets owned / controlled by state entities unusually high barrier for seeking alternatives outside of China achieving this&hellip; high levels of state ownership and control barriers that block alternatives from outside state ownership 39% of industrial assets 90+% banking all telecom and transport education, scientific, and technological services, media Extraordinary high in the state woning enterprises, land, and public institutions. State liberalized until around 2008, and then tightened again. Country owns almost 90% of Banking assets.
Why?: if you control the banks, you can control who to lend to.
illegal ownership Chinese government prohibits foreign ownership this includes media, communication How to get around this? Variable Interest Entities
Variable Interest Entities
make a Variable Interest Entities in the Cayman Island share profits. walled-off strict capital controls exchange rate managed, pegged no foreign otwnership of banks, stocks, bonds no foreign participation in the banking system Largest on-shore bond market.
RMB RMB is not freely convertible strict controls on purchasing and selling RMB
