Crony capitalism refers to a system in which businesses have close personal relationships with government officials who can use their power to hand out legal permits, tax breaks and other favors that benefit their friends. [1] China is described as the new "crony capitalist" of East Asia, where all major banks and sectors are state-run or state-controlled and private firms have very limited access to finance or new markets. [2] While China has experienced huge economic growth, it has also led to high inequality, monopolies, corruption within state-run sectors, and authoritarian political control that limits dissent. [3] Both advantages and disadvantages of crony capitalism are discussed.