Beyond Industrial Prowess: Why Mimicking China’s Model Won’t Work for the US
The recent foreign Affairs article by Dan Wang and Arthur Kroeber, “The Real china Model,” rightly highlights China’s remarkable industrial achievements over the last few decades.Their analysis meticulously details the impressive capacity China has built, but it risks overlooking a crucial element: the political and social foundations underpinning that success. While acknowledging China’s advancements is vital, simply attempting to replicate the results without understanding the system that produced them is a dangerous oversimplification. The core of China’s growth isn’t just about “process knowledge”; it’s inextricably linked to an authoritarian structure, unequal citizenship, and the systematic extraction of value from its workforce. This article delves deeper, examining why the China model isn’t a viable blueprint for the United States, and what a more effective, values-aligned strategy looks like.
The Hidden Costs of china’s Ascent
China’s economic miracle wasn’t achieved in a vacuum. It came at a important social cost, a reality often glossed over in discussions of its industrial policy. The “process knowledge” – the ability to absorb, adapt, and innovate – wasn’t freely given. It was acquired through a system that prioritizes state control and frequently enough disregards individual rights. This system relies heavily on a two-tiered citizenship structure, where migrant workers, a considerable portion of the workforce, face systemic disadvantages. Moreover,the relentless pursuit of industrial growth has involved the extraction of surplus value from labor,effectively subsidizing progress through suppressed wages and limited worker protections.
Recent research from the International Labour Organization (ILO) indicates that while China has lifted millions out of poverty, income inequality remains a significant challenge, with the Gini coefficient consistently above 0.45 for the past decade – a level considered high by international standards. (ILO,World Employment and Social Outlook 2023: Policy Brief). This disparity underscores the social trade-offs inherent in the Chinese model.
Why the US Can’t – and Shouldn’t – Copy China
The suggestion that the US should “think like Beijing” to compete is fundamentally flawed. It rests on the dangerous assumption that outcomes can be replicated without adopting the underlying political system. To emulate China’s industrial strategy,the US would need to embrace authoritarianism,suppress domestic consumption,funnel massive,often inefficient,subsidies to businesses,and allow the state to dictate capital allocation.
Did You Know? China’s state-owned enterprises (SOEs) still account for a significant portion of the country’s economic output, despite market reforms. According to the National Bureau of Statistics of China, SOEs contributed approximately 60% of China’s GDP in 2022.
Such a shift would be antithetical to core American values and would likely prove counterproductive.Expediting permitting processes, as suggested by some proponents of the “China model,” shouldn’t come at the expense of procedural safeguards that ensure accountability and protect individual rights.These safeguards are not obstacles to progress; they are essential components of a functioning democracy.
A Better Path Forward: Leveraging American Strengths
Instead of attempting to mimic China, the US should focus on reinforcing its existing strengths: a vibrant open society, robust market competition, and universal citizenship. This means building upon the American innovation ethos, leveraging deep capital markets, and collaborating with allies who share similar values.
Here’s a step-by-step approach:
- Invest in Research & Development: Increase funding for basic and applied research in key strategic sectors like artificial intelligence, biotechnology, and renewable energy.
- Strengthen Education & Workforce Development: Focus on STEM education and vocational training programs to equip the workforce with the skills needed for the 21st-century economy.
- Promote Fair Competition: Enforce antitrust laws to prevent monopolies and ensure a level playing field for businesses.
- Foster International Collaboration: Work with allies to build resilient supply chains and promote shared economic interests.
- Streamline Regulations (Responsibly): Simplify regulations without sacrificing environmental protection or worker safety.
Here’s a quick comparison of the two approaches:
| Feature | China Model | US Approach |
|---|---|---|
| political system | Authoritarian | Democratic |
