To get capital in China, and avoid "problems" with the bureaucracy, you need to be connected to a senior Party official.
Communism evolves into a feudal aristocracy. Same deal with the "oligarchs" of Russia. Where did they come from? Where did they get the capital they needed to buy up "privatized" industries?
That is such a common misconception. I can point you to a hundred entrepreneurs that have started private business in China and have been very successful. They range from people setting up to manufacturer products to restaurant owners that started with one restaurant and have now developed a chain of restaurants.
For decades the Chinese government has been working to shed state owned businesses that were big money losers. Opening up to free enterprise and capitalism. One trip to just Shanghai and a look at the number of businesses and you can see it is totally illogical to think that many people could be politically connected to a government party official.
For the ordinary citizen that wants to open a shop or start up a private business, it is often far less trouble than is experienced in the U.S. I've opened businesses in both countries, two in China.
As a foreign owned enterprise in China we certainly were put through some hoops but opening a Bar and Grill was only a matter of lease, tenant improvements, the sign out front, drawing customers and making sure the beer was cold and did not run out.