the regime in iran is a very good example of squishy totalitarianism. here's a good model of essentially the way china or the u.s. or the eu etc are running their economies: by the merger of state and business:

The Revolutionary Guard has already worked its way into virtually all aspects of Iran's economy, from banks to manufacturing to the oil sector, and it is believed to have a hand in the country's black market. Isolation under sanctions could push even more of the economy into the corps' hands.

"A lot of companies that have invested in the economy are linked to the Revolutionary Guard," said Alireza Nader, an Iran expert with the RAND Corp. "You can make the argument that if you scare away foreign investors, you are strengthening the Guard."