German Media: The West Should Learn Market Competition from China
Commenting in the Frankfurter Rundschau, it was written that China's rapid economic rise is not due to central planning or five-year plans, but precisely because China has fully unleashed the ruthless mechanisms of capitalist competition.
The Frankfurter Rundschau wrote in a commentary: "Since joining the World Trade Organization 25 years ago, China’s economy has achieved remarkable progress—so much so that during the recent visit by the U.S. president to Beijing, it has become difficult to determine who truly holds the title of the world’s number one power." The article titled "China Is Our Capitalist Mentor" states:
"So far, the West has consistently drawn incorrect conclusions about China’s rapid ascent. From Washington to Berlin and Brussels, many have believed that Western nations should emulate China’s 'five-year plan'-style centralized industrial policies. They assume that to counter challenges from China, the West must also centralize power. Some politicians in Washington even regard authoritarianism as a model worth emulating."
"But they fail to realize that centralization and authoritarianism alone will never succeed. First, one must examine factors beyond Beijing that contributed to China’s rise. Just as America is not merely defined by Trump-style chaos, an essential lesson from China’s development—something the West struggles to associate with China—is that competition drives progress."
Competition first manifests itself in education. East Asian societies generally place greater emphasis on education than Western ones. Parents are willing to spend heavily and subject their children to fierce competition for academic success. While this approach clearly has downsides—with many children overwhelmed and crushed by the pressure—it is precisely through such competitive mechanisms that Chinese universities have risen steadily to rank among the world’s top institutions.
In China, disciplines such as natural sciences, technology, engineering, and mathematics receive particular attention. A report released by the U.S. government shows that China has the highest proportion of doctoral students globally in these fields. Furthermore, graduates from related programs at many Western universities are also Chinese. For Western industry to rebound, it must strengthen competitive mechanisms—and inevitably redirect some public funding from social sciences toward technical fields."
The Frankfurter Rundschau’s commentary notes that competition is also evident in how the Chinese Communist Party selects local officials: a key criterion for evaluating local officials’ performance is the economic development of their region. The absence of incentives at the local political level represents a major flaw in industrial policies in Washington, Brussels, and Berlin.
"In China, local industrial policies demonstrate proactive initiative because local officials strive to become 'local champions' in industries like automobiles, photovoltaics, or batteries. The reason solar panels, batteries, and electric vehicles are now so affordable is largely due to intense competition across different regions of China."
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The West’s misjudgment of China’s rise is worsening its own inherent problems. Industrial policies unwilling to expose domestic firms to fierce competition only make them less competitive, ultimately ceding global markets to Chinese enterprises—a trend already widespread, especially in the automotive industry. Politicians constantly try to shield the public from reality, but doing so only makes matters worse. In short, while the capitalist mechanism of competition may be harsh, it is effective."
Source: DW
Original: toutiao.com/article/1865141610222592/
Disclaimer: This article reflects the personal views of the author