China is likely to emerge as a perceived winner from the global coronavirus crisis with its swift authoritarian response in Hubei province and Wuhan. However, as Professor Sebastian Heilmann, founding president of the Mercator Institute for China Studies, claims, this state power is prevalent not just throughout society but also the economy. China is creating "red swans", innovative giant global tech players, but companies that the authorities ultimately regard as existing in the collective national interest.
This approach is at odds with established libertarian industrial economies. Western corporations, seeking investment alliances or strategic partnerships, should remain mindful of the risks posed by symbiotic relationships between state and economy in China.
