U.S. firms chased shareholder value, boosting profits and elite innovation while shedding factories—leaving supply chains efficient, fragile, and hollowed out.
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 concept of the U.S. fostering its foundational education and producing enough STEM graduates to meet its own needs, rather than relying on imported talent, is a widely discussed and highly sought-after goal. Nevertheless, realizing it is extremely difficult due to a combination of systemic educational shortcomings and broader societal factors. Challenges in the U.S. … Read more
When China introduced the “Made in China 2025” (MIC2025) initiative in 2015, many Western policymakers and academics initially reacted with a mix of alarm and skepticism, with some believing it would lead to a Soviet Union-style central planning collapse. The “Failed History” of Central Planning (Soviet Model) Western observers often viewed China’s Made in China … 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
During the 1990s to 2010s, Western scholars and policymakers, influenced by post-Cold War overconfidence and the assumption of uncontested U.S. dominance, largely failed to foresee the emergence of near-peer rivals such as China. The “Unipolar Moment” and “End of History” (Post-Cold War Euphoria) The collapse of the Soviet Union left the United States as the … Read more
The gap between China’s strength in concrete, real-economy areas—such as infrastructure, manufacturing, renewable energy, and high-speed rail—and the U.S.’s command of the FIRE sectors (Finance, Insurance, Real Estate) stems from deep-seated structural, ideological, and institutional distinctions that have developed over the last three to four decades. State-Led Development vs. Market-Driven Capitalism China has adopted a … 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