President Obama, envious of China’s economic model, proclaimed his admiration for the high-speed railways, bridges, skyscrapers, and solar panels that China is building. (“That used to be us,” he famously said – a line apparently so powerful it became the title of a book.) But even the Chinese know that Obama’s envy is misplaced. 

Indeed, the irony is that Obama is now on the attack against the economic growth engine that the Chinese really need: firms that can finance companies with the most promise. Yes, that includes private equity companies—such as Bain. China is woefully misallocating capital and thus pouring money into unproductive industries that are a drag on Chinese GDP.