In his book ‘A Century of Ebb and Flow’, author Wu Xiaobo argues that entrepreneurs’ problems pre-date the founding of the Communist party 60 years ago. Under the Qing emperors and the Nationalists who succeeded them, he says, the economy was always dominated by state enterprises and that any time a private company became too big or successful its owner was removed and it was gobbled up by a state competitor.
“An authoritarian, centralised state cannot tolerate alternative centres of power,” says one well-connected Chinese businessman. “Until we have meaningful political reform in China, we’ll never be able to overcome these issues and our economy will not be able to move on to the next stage of development.”