Mr Nolan points to inconsistent central policy, provincial protectionism that prevents companies from buying up competitors and an inability to reduce overmanning because of the premium placed on low unemployment and social stability.
U.S. negotiators are making serious demands on matters they claim to be central to 21st century trade, yet they appear unwilling to give ground on the 18th century protectionism still afforded U.S. textile and footwear producers.
"We should avoid any excuse that might lead to the revitalization of trade protectionism, " said Su Ning of the People's Bank of China, the country's central bank.