Where China is harmed by their overregulation they are helped by their practice of creating laws and then selectively enforcing them. In Zhuhai (near Guangzhou

Where China is harmed by their overregulation they are helped by their practice of creating laws and then selectively enforcing them. In Zhuhai (near Guangzhou) there are far less taxis on the street than demand would dictate, however plenty of citizens drive around offering people rides at similar rates and everybody uses them, locals and foreigners alike. It is obviously illegal but it is so widespread and common (happens right in front of you and the police on every major street all day) that it is clear the police aren't doing anything about it. That system is very Chinese. They make laws that would seem to restrict business and then local officials tell the police to ignore them when they deem their area is better off without them. Unfortunately this also extends to things like drugs and even kidnapping in some areas. No system is ever perfect.