I'd like to add a seventh theory to Noah's six: Chinese capital owners over-invest in certain manufacturing sectors because many other options are unavailable o

I'd like to add a seventh theory to Noah's six: Chinese capital owners over-invest in certain manufacturing sectors because many other options are unavailable or politically risky. Solar manufacturing, which China led globally as early as 2012 (and saw tariff fights with the West starting around then) was attractive to Chinese capital because it was domestic, export oriented, non-ideological, and not already crowded with or formally claimed by state owned enterprises. A lot of investment options that are attractive among wealthy Westerners aren't available in China because: 1: Overseas investment is restricted for Chinese citizens. 2: The state already owns large enterprises in many sectors of the economy (mining, electrical infrastructure, nuclear power, transportation...) and it's not clear that it is possible (in terms of competition or what's allowed politically) for a private enterprise to dominate in those sectors. 3: Even in sectors where the state isn't well established, private enterprises may face rules that stymie growth (e.g. the widely remarked differences between TikTok and its closest domestic Chinese equivalent, Douyin, which are driven by Chinese content restrictions.) Ambitious wealthy Chinese are left with fewer attractive investment options. They "over-invest" in manufacturing goods for export, despite modest returns, because it's the least-worst option.