Bo Ouster Means State Capitalism in China Will Fade, Zhang Says

Bo Xilai’s ouster last week as head of Chongqing is a signal that China will increase the role of private businesses in the economy and scale back state capitalism, said Zhang Xin, Chief Executive Officer of Soho China Ltd.

Zhang, whose company is the biggest property developer in Beijing’s central business district, said yesterday on the Charlie Rose show that Bo’s ouster and comments made last week by Chinese Premier Wen Jiabao about continuing economic opening are signals that the model focusing on state-directed bank lending and state-owned companies will fade.