Part 5/7:
Some argue that the Chinese model, which includes state intervention, can facilitate growth and innovation—citing examples of industrial expansion efforts in second-tier cities. Local governments have indeed cultivated environments that help support technology firms and drive certain sectors, such as electric vehicles, towards significant growth.
However, others warn that this dependence on government favor does not equate to a robust entrepreneurial spirit capable of yielding sustainable innovation. The heavy oversight of state motives influences the direction and freedom of these businesses, leading experts to question the long-term viability of such an economic model.