U.S. de-industrialization

The U.S. optimized for efficiency, innovation, and globalization. China optimized for control, scale, and industrial learning.

China’s Rise: Trade War, “Overcapacity,” and Western Decline

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Before 2010, China primarily exported labor-intensive, low value-added products to developed countries while importing high value-added, capital- and technology-intensive goods from the West. Over time, however, China’s industrial upgrading has accelerated, and its exports have shifted toward higher value-added, capital- and technology-intensive products that increasingly compete directly with developed economies. Western, particularly U.S., accusations of … Read more

Huawei vs. GE: Long-Term Innovation Over Short-Term Profits

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Huawei’s founder, Ren Zhengfei, adopted a markedly different approach from Jack Welch’s strategy of financialization and downsizing. While Welch emphasized short-term shareholder gains and cost-cutting—even at the expense of manufacturing and employees—Ren focused on long-term industrial growth, technological capability, and self-reliance. In contrast to Welch’s approach, Huawei’s strategies actively strengthened China’s industrial base and fostered … Read more

Reviving America’s Mixed Economy: Lessons from U.S. and China

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In American Amnesia: How the War on Government Led Us to Forget What Made America Prosper (2016), Jacob Hacker and Paul Pierson argue that beginning in the late 1970s, the United States experienced a powerful ideological shift. Conservative movements and corporate interests championed “market fundamentalism”—the belief that government intervention inevitably stifles growth and freedom. This … Read more

China’s Rise: Overcoming Stigma Through State-Led Innovation

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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

Why Reshoring American Manufacturing Remains Unfeasible

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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

America’s Lost Industrial Labs and the Challenge of Innovation

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Over the 20th century, the United States led the world in technological innovation, driven in large part by industrial research laboratories such as Bell Labs, Xerox PARC, and IBM Research. These institutions combined long-term vision, interdisciplinary collaboration, and stable funding to produce breakthroughs that transformed industries and everyday life. Today, however, the landscape of innovation … Read more

Financing Innovation: China and Bell Labs Compared

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This comparison links Bell Labs’ model with China’s land-finance-backed industrial strategy, showing how both employ strategic risk and investment in core industries to secure long-term dominance. Bell Labs achieved technological leadership by investing heavily in foundational R&D, accepting high upfront costs and uncertain returns to drive breakthroughs. Similarly, China channels land-sale revenues into strategic sectors, … Read more

Understanding U.S. Power: Decline, Challenges, and Global Impact

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The “America decline theory” claims the U.S. is in irreversible decline, but this is largely a myth. While concerns rise amid economic or political setbacks, history shows the U.S. recovers from crises. Often exaggerated, “decline” is relative—especially compared to rising powers like China—while ignoring U.S. strengths in innovation, military, and soft power. Political motives also … Read more

China’s State-Led Capitalism: A Hybrid Path to Modernization

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China’s state-led capitalism follows a unique trajectory that differs from the conventional Western notion of modernization, particularly the framework associated with the “Washington Consensus.” While the Western model emphasizes market liberalization and limited government involvement, China’s approach adopts a hybrid system that combines market forces with proactive state direction. This model allows China to harness … Read more

China’s Edge: Integrated Supply Chains vs. U.S. Fragmentation

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Apple cancelled its decade-long effort to build an electric car in 2024, ending years of speculation without ever bringing a vehicle to market. In contrast, Chinese companies such as Xiaomi—already a major player in consumer electronics, software, and online services—are not only producing electric vehicles(EV) but selling them at scale. This contrast underscores a broader … Read more