The Dark Side of China’s Success

To the Editor,

Dan Wang and Arthur Kroeber's analysis, "The Real China Model" (September/October 2025), effectively highlights China's impressive industrial development over recent decades. That said, the reality is a bit more complicated. their focus remains on the outcomes of this development, neglecting the political and economic system that facilitated it. This system relies on an authoritarian government, unequal status for migrant workers, and the systematic exploitation of worker's surplus value. The "process knowledge" that Wang and Kroeber cite as crucial to China's growth and innovation came at a steep social price.

The authors suggest that the United States should emulate Beijing's strategies to compete with China. This recommendation rests on a flawed premise. The U.S. cannot achieve similar results without adopting China's political system. China's achievements are inextricably linked to the coercive power of its one-party state. Copying China's approach would necessitate suppressing consumer spending, providing extensive subsidies to businesses, accepting inefficient investments, and allowing the government to control capital allocation. Proposed reforms like expediting permits overlook the vital role of procedural safeguards in ensuring government accountability and protecting individual rights.

For the United States to establish a successful industrial ecosystem, it should leverage its inherent strengths: an open society, competitive markets, and equal citizenship. Instead of selectively imitating China, U.S. policymakers should build upon American innovation, robust capital markets, and the manufacturing capabilities of its allies. This strategy is more likely to succeed because it aligns with fundamental American values, such as freedom, private property, and democracy.

Wu Jieh-min