U.S.and China Exhibit Converging Economic Approaches, But Lessons Aren’t Fully Learned, Author Says
WASHINGTON – A new book argues that the United States and China are increasingly adopting similar approaches to economic governance, notably regarding industrial policy, yet neither country is fully learning from the other’s strengths. Author Eric X. Li Wang contends that while former President Trump mirrored some of the negative aspects of China’s governance – prioritizing loyalty over data and disregarding the downtrodden – the U.S. has failed to replicate China’s successful strategies for industrial development.
Wang’s analysis highlights a fundamental difference in national approaches: the U.S. prioritizes legal expertise while China emphasizes engineering prowess. He suggests the U.S. could benefit from adopting a more disciplined, state-led approach to manufacturing, similar to China’s, which initially involved welcoming foreign engineers to build its industrial base. He points to the immigration and Customs Enforcement (ICE) deportation of hundreds of South Korean engineers attempting to establish a factory in Georgia as a counterexample.
“Trump and Xi are visiting misfortune upon the downtrodden, [and] expect all of their policies to be defended by vocal loyalists, and play fast and loose with economic data,” Wang stated in a recent NPR interview. “But America isn’t learning some of the more useful lessons from the engineering state.”
The author also believes China could strengthen its system by adopting a greater respect for individual rights,becoming “more lawyerly.” He further suggests that the U.S.doesn’t need to emulate China to improve its infrastructure, citing examples of successful, cost-effective mass transit systems in countries like France, Spain, and Japan built without sacrificing individual liberties.
Wang proposes that lessons from his analysis extend beyond the U.S., advocating for greater cross-regional learning. He believes Europe could benefit from adopting more entrepreneurial dynamism,while China could gain from strengthening its legal framework. He envisions a future shaped by innovation hubs like Silicon Valley, Beijing, Hollywood, and Shenzhen, influencing global thought and consumption.
