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.
Introduction: From World Factory to Technology Exporter Over the last forty years, China’s position in the global automotive industry has experienced a profound transformation. Once primarily a recipient of foreign technology in exchange for market access, China has emerged as the world’s leading hub for new energy vehicle (NEV) innovation. Today, it exports not only … Read more
I. How State-Led Capitalism Operates in Practice China’s system of state-led capitalism is best understood as a pragmatic hybrid rather than an ideological extreme. It does not resemble Soviet-style central planning, nor does it follow Western laissez-faire principles. Under normal conditions, production and allocation are largely market-driven, with firms competing, innovating, and responding to demand … Read more
I. Gratitude or Reciprocity? Reframing the Meaning of China’s WTO Accession At the heart of debates over China’s rise lies a fundamental question: should China’s integration into the global economy be understood in terms of gratitude and patronage, or as the outcome of mutual interest among sovereign actors? The assertion that China “owes” its development … Read more
China’s rise is often framed in Western discourse not as a normal phase of development, but as a systemic disruption. Concepts like “rebalancing” are presented as neutral, technical responses—addressing trade deficits, market distortions, supply-chain vulnerabilities, or national security concerns. Yet, a closer examination reveals that such narratives function less as economic diagnoses and more as … Read more
I. The De Facto “G2” Economic Loop A. Mutual Benefit Through Asymmetric Global Roles For decades, the United States and China have functioned as a de facto “G2,” quietly orchestrating a global economic system that primarily serves their own interests. Their roles are complementary and asymmetric: the United States issues the world’s reserve currency, consumes … Read more
Unlike the U.S. defense industry’s evolution toward privatization, consolidation, and an emphasis on high-margin experimental systems, China has pursued a state-directed, integrated, and gradual modernization strategy. Beginning in the 1950s, China prioritized centralized coordination, built a comprehensive military-industrial foundation, and systematically adapted civilian technologies for military use. This long-term approach has enabled China to steadily … Read more
This study undertakes a critical examination of the logic behind the so-called “China global price revolution,” exploring how and why it has functioned, where it shows structural weaknesses, and under what conditions it might fail. By situating this analysis within a broader historical and economic context, the discussion considers how China’s impact on global prices … Read more
I. Reframing the “Great Divergence”: Not Race or Values, but Cost-Efficient Violence and Industrial Power 1. The Foundations of the Great Divergence: Power, Production, and Coercion The historical “Great Divergence” between the Global North and the Global South was not enabled by racial superiority, cultural refinement, or the intrinsic legitimacy of Western values. Rather, it … Read more
1. A General Assessment of “We Warned About the First China Shock. The Next One Will Be Worse” The July 14, 2025 New York Times article, “We Warned About the First China Shock. The Next One Will Be Worse,” by David Autor and Gordon Hanson, presents a forceful intervention in the debate over U.S.–China economic … Read more
In Western discourse, “rebalancing” between China and the West is often framed as a neutral, technical adjustment—addressing trade imbalances, supply-chain resilience, or national security concerns. Yet this language obscures its political function. Rather than a dispassionate economic correction, rebalancing frequently operates as a tool of power, shaped by a global order historically structured around Western … Read more