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Inside China's hybrid capitalism model

Reporter Mukul Devichand was given a tour of ZTE's factory.

By Mukul Devichand
Presenter, Tiger v Dragon, BBC Radio 4


High up in the skyscraper that houses the ZTE company's headquarters in Shenzhen, southern China, I was treated to a rare "Charlie and the Chocolate Factory" moment.

ZTE was founded in 1985 by a branch of China's aerospace ministry

Although it is not yet well known in the West, ZTE is one of China's new multinationals.

What confuses outsiders is that, like many Chinese firms, it has a background as a "state-owned enterprise": a uniquely Chinese mix of the Communist government and the market.

These firms are part of China's hybrid model of "state capitalism", which some fear is too unaccountable. They are under pressure to be more transparent, but I hadn't realised how literally they would take that at ZTE.

"Would you like to see the production lin