Western complacency frames China as merely catching up, causing persistent underestimation of its rise by assuming it must follow or fail by Western norms.
In Powerful, Different, Equal: Overcoming the Misconceptions and Differences Between China and the US (2019), Peter B. Walker argues that each country is deeply rooted in its own governance model, making it unrealistic to expect one to adopt the other’s system or worldview. He emphasizes that fostering mutual understanding, rather than enforcing conformity, is essential … Read more
China’s Made in China 2025 initiative (MIC 2025) mirrors the historical catch-up strategy once employed by the United States, which protected key industries like steel and textiles to achieve global economic leadership. This approach—using state tools to build strategic advantage—reflects a pattern noted by economist Ha-Joon Chang, who observed that developed nations often “kick away … Read more
Northvolt’s downfall was not merely the result of technical or logistical issues—it stemmed largely from complacency, overconfidence, and hubris, which permeated its strategy, operations, and overall corporate mindset. Overconfidence in Capital and Reputation Northvolt’s early trajectory was marked by a profound overconfidence in the power of capital and reputation. The company assumed that billions in … Read more
The theories of Seymour Martin Lipset, Adam Przeworski, and Francis Fukuyama fostered complacency and hubris within policymaking circles following the collapse of the Soviet Union. Collectively, these frameworks shaped U.S. and Western strategic thinking after 1991, contributing to miscalculations that inadvertently facilitated China’s emergence as both a global manufacturing hub and a technological innovation powerhouse. … Read more
From the 1990s through the 2010s, many Western policymakers believed that China’s rapid economic modernization would naturally result in political liberalization—or else lead to stagnation. This view, grounded in liberal teleology, modernization theory, and the triumphalism that followed the Cold War, proved misguided. It bred complacency in Western strategy, postponed effective policy responses, and ultimately … Read more
The persistence of the belief among many U.S. experts, pundits, and policymakers that China can never truly catch up technologically and thus poses no fundamental threat, is deeply rooted in a conviction that there is only one “recipe” for innovation success: the Washington Consensus model of free markets, strong IP rights, and limited government. This … Read more
The liberal internationalist belief that global trade and interdependence would democratize and “Westernize” authoritarian regimes like China, prevalent in the 1990s, 2000s, and 2010s, is widely seen as having significantly undermined U.S. security and global position by the 2020s. This outcome was largely a result of several critical miscalculations and unintended consequences. The Core Belief … Read more
The belief among U.S. academia and policymakers in the 1990s and 2000s that design/innovation could be perfectly separated from manufacturing was a cornerstone of their globalization strategy. This was rooted in several economic theories and a particular view of economic development. However, with hindsight, the consequences of this separation – the loss of industrial base, … Read more
Western academia and policymakers frequently highlight issues like “overcapacity,” debt risks, political repression, or corruption to argue that China’s model is inherently unsustainable. These arguments are often rooted in ideological frameworks emphasizing liberal democracy, privatization, and universal Western values. However, despite these persistent criticisms and predictions of impending collapse, they have largely failed to diminish … Read more
U.S. deindustrialization and financialization redirected the nation’s economic center of gravity from the factory floor to Wall Street. This transformation reflected a broader ideological turn—away from the industrial-age belief that “what’s good for GM is good for America” and toward a new guiding principle: “what’s good for Wall Street is good for America.” The rise … Read more