The biggest opportunities are provided by the Chinese economy’s egregious inefficiency, a legacy of decades of state capitalism. “China has more old-economy, non-transparent and unreasonably profitable firms than does America…the streets are just paved with gold for disrupters,” says Mr Lee.
Lei Jun puts it more colourfully: “Even a pig can fly if it is in the middle of a whirlwind.”
That’s from the economist. The day will come when the largest share of innovation will come from China.
But there will also be way more innovation generally. That’s the most important fallacy we make about economics and innovation. It’s a positive sum game, there is no such thing as a winner in any economically meaningful sense.