The CCP is more like a VC fund than a traditional central planner. Arthur Kroeber argues this is how China has succeeded, gaining massive dominance in industrial manufacturing, and sidestepping the traditional failure modes of centrally planned economies. The CCP supports broad sectors rather than single nationalised firms, and encourages ruthless competition in those sectors. Even though the CCP knows that competition will cause state-supported firms to fail, it believes that a few winners…