[wolverine876]

> I suppose that when the cost of failure is reduced, dynamism results, because reaction times to opportunities are reduced and people are able to take the risk of following a new path.

First, how is the cost of failure reduced?

It sounds like fundamental economics: If you reduce the cost of investing, usually by lowering interest rates, then investment increases, following the pattern you described.

What is the state of credit / funding in China? Is the government still pumping credit into the economy?

> People seem to throw themselves in to ventures without business plans, market research or specific costings.

But usually when we start seeing that pattern, it's a bubble. Resources are being allocated to unproductive initiatives.

As with anything, there's a balance.

[ineedasername]

There's a social cost & opportunity cost to failure. If a culture stigmatizes failure there's less risk taking. Though I think it often happens at the family level too: One business failure and you're the family screw up, maybe even if you get success later on it's still held over your head.

[wolverine876]

I understand that, but the comment seemed to say there was less cost to failure in China, not more.

[ineedasername]

Ah, yes-- a reread of the comment does imply that, and I can't evaluate that claim. Except to say that, as you mentioned, the financial cost shouldn't be much different (unless the government has much stronger support/subsidies for starting new businesses? I know the Bank of China has friendly terms for domestic loans but I though that tended to be for large scale initiatives and less so for startups)

I'd really like to know more about any cultural or social factors involved. Putting aside the governmental regime, I think the region has a fascinatingly different culture & outlook on the world that differs much from more Western views but has a depth that is often obscured by modern politics. Of course some of that stems from a historic tradition that made the region extremely opaque, if not outright inaccessible (geographically) from outsiders. Hong Kong for example was founded (partially) because ports & cities beyond that area were forbidden. (The cynical & hypocritical Opium Wars waged by Great Britain were of course a factor as well)