China’s state sets goals, takes risks, and builds scale, while firms compete and innovate—an integrated system the market-driven U.S. struggles to match.
By pursuing pluralistic learning and strategic integration, China avoided dependence on foreign technology and developed its own high-tech systems. By the 2010s, this approach had enabled the country to move beyond its role as a low-cost manufacturer, emerging as a front-runner in selected advanced technologies. China’s Path to Technological Independence Through Strategic Innovation China’s technological … Read more
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
In Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism, Ha-Joon Chang argues that corruption extends beyond individual misconduct to encompass systemic injustice within the global economic order.[1] He contends that this system privileges multinational corporations and financial elites while undermining the developmental autonomy of poorer nations. Moreover, the moral rhetoric … Read more
China today faces a modern version of the stigmatization once directed at Germany and Japan, epitomized by stereotypes that it merely copies rather than innovates, that its progress is state-driven rather than genuine, and that its culture favors conformity over creativity. Such politically charged narratives serve to delegitimize China’s development model, just as Britain once … 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
China’s financial reforms and industrial policies are deeply intertwined, reflecting a strategic focus on serving the real economy. Rather than allowing financial markets to dictate industrial outcomes, China has deliberately aligned its banking system, state-owned enterprises, and policy initiatives to support productive investment, technological upgrading, and long-term economic stability. This approach emphasizes pragmatic state-led guidance, … Read more
In the manufacturing sector, labor costs are only one aspect of competitiveness, and their relative importance varies across different industries. What truly determines manufacturing strength is the overall landed cost, which depends on a combination of factors such as workforce quality, infrastructure— including power supply and transportation— and the availability of upstream and downstream industrial … Read more
This analysis explores contrasting approaches to governance, economic policy, and technological strategy in the United States and China. Drawing on historical, cultural, and institutional contexts, it examines how the U.S.’s minimalist government philosophy prioritizes individual liberty and market-driven innovation, while China’s centralized model emphasizes collective welfare, long-term planning, and strategic coordination. By comparing political structures, … Read more
This essay traces China’s remarkable journey from wartime struggle to technological leadership, exploring the interplay of individual brilliance, patriotic commitment, and systemic innovation. It highlights the pioneering contributions of scientists such as Deng Jiaxian, and Tsien Hsue-shen, examines the evolution of China’s state-driven innovation model, and contrasts it with Western approaches shaped by market-driven priorities. … Read more
China’s land finance model represents a distinctive financial innovation rooted in its state-owned land system. Instead of selling land outright, the state auctions land use rights and channels the resulting revenue into large-scale infrastructure development. Institutions such as China Development Bank, backed by sovereign credit, issue bonds to finance both domestic and international projects. This … Read more