No Ancient Wisdom, No Followers

More about the book

In the past three decades, China has transformed from near collapse to a global powerhouse, becoming the second largest economy and exporter while lifting 500 million citizens from poverty and creating over a million millionaires. However, China's leaders label the economic model as “unstable and unsustainable.” James McGregor, with 25 years of experience in China as a businessman and journalist, presents extensive research revealing the flaws in the so-called “China Model.” This model of authoritarian capitalism is self-defeating, clashing with global trade norms and threatening multinationals wary of losing trade secrets to state-owned enterprises (SOEs). These SOEs, deemed “national champions,” are entering a global market increasingly frustrated by state capitalism. The reliance on an outdated investment and export model is faltering, necessitating a radical overhaul for continued prosperity. China must shift towards consuming more of its production, fostering innovation, and empowering private enterprise. The Communist Party must relinquish its tight grip on economic power to promote growth and social stability. As history shows, navigating these uncharted waters without wisdom poses a significant challenge for China today.