China's emergence from its stringent zero-COVID policy seems to be the opposite of controlled and competent, two words that have otherwise been frequently used to describe its balancing act between capitalism and one-party rule. Beyond this, we are witnessing an unprecedented convergence of factors: a government crackdown on domestic Big Tech, population decline, a persisting real estate crisis, and the Biden administration’s recent introduction of some of the most draconian export controls in history.To discuss this crossroads in China’s economy and society, Luigi and Bethany talk to Chicago Booth’s Chang-Tai Hsieh. Amidst the paradox of escalating tensions and record-breaking bilateral trade, they discuss whether we are underestimating China, what advice to give to Western businesses operating there, and the long-term prospects for the country's economy and their global implications.Show notes:On February 9th, 2023, "China’s New Covid Strategy," the next webinar in the Stigler Center's series on China's political economy, will feature Chang-Tai Hsieh, along with Schwarzman Scholars/Harvard Medical School's Joan Kaufman and the Financial Times' Nian Liu (Stigler Center Journalist in Residence, 2021). Register here.Revisit previous webinars hosted by the Stigler Center on China’s political economy and read a summary.Economists share blame for China’s ‘monstrous’ turn, Janos Kornai in the Financial Times.