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Caution: Personal bias stemming as a Chinese-born U.S citizen. One reason for American dominance after WWII was that so much of Europe's manufacturing capability was destroyed by war. America has (about) the same manufacturing base as 2 years ago. Currently, lots of U.S manufacturing, save for defense-related projects have been outsourced elsewhere (i.e., GM/Ford cars are only 50%, 60% made in the U.S; GM cars sold in China, are often assembled and with many parts made in a GM-Shanghai joint-venture factories; Pratt & Whitney and GE Aircraft engines out-source their engine compressors to low-cost developing countries such as Poland, etc.). Perhaps what's even more alarming, is how many industrial and high-tech companies have out-sourced their R&D to China: Intel, AMD, United Technologies, GM, MSFT all have R&D centers in Shanghai or Beijing. So Chinese manufacturing, on both low-end and high-end, I would argue is booming. Another is the strength of American industry was fed by migration of farmers' sons and daughters into the cities .... they had a lot of practical skills See cities like Shenzhen and Wuxi. Actually, the bulk of Chinese growth is attributed to a major migration of farmers' sons and daughters from in-land China to the coastal cities' huge factory complex. This makes for China's low-end exports. As for having practical skills, China pumps a great deal of math/science/engineering graduates, more per capita than U.S - a good percentage of whom would then later pursue post-doc or graduate work in the U.S/Europe. So I would argue, that Chinese human capital is also booming. Finally there is the question of relative amount of freedom. In absolute terms, yes, U.S enjoys more political, social and economic freedom. But I would argue, that Westerner's tend to overestimate the "freedom" disparity between themselves and other "authoritative regimes." In another words, U.S, IMHO is not a pure meritocracy either (corporate personnel is often determined via social connections or pedigree; political candidates are often chosen by back-room deals). Yes, there is tremendous room for China to improve on its human rights and political autonomy; but the whole Western democratic ideal/Plato's Republic is just another manifestation of the European "holier than thou" attitude, left over the colonial times. |