Is China entering a hyper network effect?

China remains one opaque mess: not a mess politically or economically, but a spaghetti of competing narratives that it is very difficult to read. Sometimes, one learns that this is a state capitalist regime where innovation is difficult, as the market is controlled and corrupted by the Communist Party. At other times, we understand that China is a hotbed of innovation as a 'take-off' wave innovates with the tools provided by the west:

Imagine: At the same time eCommerce is getting sea legs, TV Home Shopping is also getting hot. Online ads are growing not because people are TiVoing through commercials—both TV and online ads are growth markets at the same time. Ditto for entertainment and piracy: While Hollywood sees the Internet as a threat to its cozy legacy business, China’s entertainment industry is just now building amid a world where piracy is already rampant. No one assumes anyone will buy a CD, so they just look for other ways to make money. The wonder of China right now isn’t just the size of the market. It’s the rate at which dozens of “old” and “new” economies are all maturing amid one another, and the hyper-network effects that such economic progress is having throughout the country.

If China is a hyper-network, then the effects remain confined to the domestic market and we will only see the consequences when they are copied or applied in the West. This may be the greatest hollowing out yet seen: as we see industrialisation and IT merge in a new 'take off'. Perhaps we should see this as a hyper network.