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The U.S. Must Learn From China's State Capitalism to Beat It

Richard D'Aveni

Such measures would focus America's resources on beating China at its own game. They would build our weaknesses into strengths to shift the basis of competition. They would turn neglected strengths into advantages China cannot match. And they would disrupt or neutralize many strengths of China's system. Some people say government shouldn't manage industry--it should trust the evolution of the free-market. But we have managed the birth of industries before--the space program, pharmaceuticals, semiconductors, and others. Where would we be without the DARPA-created Internet? 

Only by adapting will we stop China from turning our strengths into weaknesses--and will we make weaknesses out of their strengths. It is time to stop transferring ever more wealth, power, and jobs to the East.

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