The rise of a precarious gig workforce of over 200 million people directly contradicts the Communist Party's founding promise of a "dictatorship of the proletariat." This growing underclass, living with minimal security and rights, represents a societal shift towards a capitalist-style structure that the party was originally formed to overthrow, creating a deep ideological crisis.

China faces a severe labor market mismatch. Over the last five years, the number of university graduates grew by 40% to nearly 12 million. Simultaneously, the economy shed 20 million jobs, creating a surplus of educated youth with limited opportunities and suppressed wages.

Chinese policymakers champion AI as a key driver of economic productivity but appear to be underestimating its potential for social upheaval. There is little indication they are planning for the mass displacement of the gig economy workforce, who will be the first casualties of automation. This focus on technological gains over social safety nets creates a significant future political risk.

America is not just a nation of immigrants but of emigrants—people who made the bold choice to leave behind collapsing societies. The Irish fled famine, Germans fled revolution, and Chinese, Vietnamese, and Iranians fled communism and turmoil. This history of leaving failing states is a core part of the American identity, not a betrayal of one's homeland.

China's "engineering state" mindset extends beyond physical projects to social engineering. The Communist Party treats its own people as a resource to be moved or molded—whether displacing a million for a dam or enforcing the one-child policy—viewing society as just another material to achieve its objectives.

Despite rhetoric about shifting to a consumption-led economy, China's rigid annual GDP growth targets make this impossible. This political necessity forces a constant return to state-driven fixed asset investment to hit the numbers. The result is a "cha-cha" of economic policy—one step toward rebalancing, two steps back toward the old model—making any true shift short-lived.

The Gaokao produces millions of highly educated graduates, but China's slowing economy and the rise of AI cannot absorb them. This mismatch between educational output and job market capacity creates a potential powder keg of youth unemployment and social unrest.

The Gaokao rewards rote memorization and test-taking skills over creativity and boundary-pushing. This educational culture could be a long-term liability for China's ambitions to become a global innovation leader, as it doesn't cultivate the imaginative mindset seen in other tech hubs.

The immense profitability of real estate in China created a gravitational pull for capital and talent. Productive companies diverted resources to start real estate side-businesses, and entrepreneurs abandoned other sectors, resulting in a net drag on national productivity and innovation.