The 1990s belief that economic liberalization would inevitably make China democratic provided ideological cover for policies that fueled its growth. This hubris, combined with corporate greed, allowed the US to facilitate the rise of its greatest geopolitical rival without achieving the expected political reforms.

Beyond geopolitical tensions, Americans and Chinese are more culturally alike than any other peoples. Both societies are founts of entrepreneurial dynamism, hustle, and ambition. They share a belief in technological progress and see themselves as great world powers, creating a unique parallel between the two rivals.

The U.S. is shifting from industry supporter to active owner by taking direct equity stakes in firms like Intel and U.S. Steel. This move blurs the lines between free markets and state control, risking a system where political connections, not performance, determine success.

China's economic ascent began when Deng Xiaoping invited American experts to teach them about capitalism. This strategy, combined with becoming the world's manufacturing hub, allowed them to learn the system, grow strong quietly, and eventually become a dominant global power.

History shows the U.S. has a unique ability for systemic reform in response to crises, such as when the Gilded Age's excesses gave way to the deep structural changes of the Progressive Era. This suggests a capacity to overcome today's political fractures.

China's immense state capacity allows for rapid infrastructure development but also enables disastrous national policies like the one-child policy or Zero-COVID. Unlike the deliberative U.S. system, China's efficiency means that when it goes off track, it can go catastrophically off track before any course correction is possible.

Deng Xiaoping’s reforms, which ignited China’s growth, were based on adopting American free-market principles like private enterprise and foreign capital. China’s success stemmed from decentralizing its economy, the very system the U.S. is now tempted to abandon for a more centralized model.

China operates as a high-agency "engineering state" that executes relentlessly on large-scale projects. In contrast, America's deliberative, litigious society often leads to endless delays and failures on major infrastructure goals like the California high-speed rail, highlighting a fundamental difference in state capacity and approach.

China's constant building of subways, high-speed rail, and parks provides tangible proof of national improvement. This "physical dynamism" creates a powerful sense of public optimism and builds political resilience for the Communist Party, a stark contrast to the stagnation felt in the U.S.