The second article argued that the fundamental difference between the American and Chinese economic systems is not capitalism versus socialism, nor markets versus the state. Rather, it is the outcome of different competitive environments.
In our two earlier pieces titled “Two reports, two interpretations of China” and “The political economy of modern capitalism” (The Edge, June 1, 2026), we argued that many observers are looking at the same China but arriving at fundamentally different conclusions.
The first article examined two competing interpretations of China’s rise. One sees state planning, industrial policy and geopolitical ambitions as the primary driver. The other sees competition, incentives and market dynamics as the dominant force.
