The U.S. optimized for efficiency, innovation, and globalization. China optimized for control, scale, and industrial learning.
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
The United States’ growing unease over China’s lunar exploration stems from a clear realization: China is no longer merely experimenting in space—it is executing a disciplined, long-term plan with precision and seriousness. The completion of the Chang’e-6 mission revealed more than scientific data or engineering skill; it exposed deeper signals about China’s strategic focus and … Read more
Ren Zhengfei’s stewardship of Huawei reflects an uncommon combination of long-term vision, holistic thinking, and flexible resilience. More than a technologist or executive leader, he operates as a master strategist, designing robust organizational systems that allow Huawei to endure and evolve amid geopolitical constraints and technological disruption. His leadership choices have not only defined Huawei’s … Read more
The collapse of the Soviet Union raises a central question: could reform have preserved it? Interpreted on China’s terms, the contrast is clear. China survived prolonged upheaval by undertaking systemic transformations that built not only industrial capacity but a resilient industrial ecosystem, balanced authority with internal checks, and fostered strategic autonomy. These foundations allowed later … Read more
China will still generate major, highly successful companies, but they are more likely to arise from capital-driven growth and platform expansion—such as ByteDance or Tencent—rather than from the kind of organically built industrial powerhouse represented by Huawei. The specific historical, political, and economic conditions that enabled Huawei’s rise are unlikely to occur again, meaning future … Read more
Over the past several decades, the West—especially the United States—has drifted into what anthropologist David Graeber termed a “big idea famine,” marked by a decline in transformative innovation despite abundant capital and talent. Military and strategic technological progress has slowed as ethical hesitation, bureaucratic inertia, and weak prioritization constrain experimentation, while the civilian tech sector … Read more