Process Knowledge as China's Competitive Edge

China's rapid ascent from rural poverty to industrial superpower reshaped the global economy and established a new center of gravity for manufacturing. Today, Chinese factories anchor much of the world's supply chains, producing goods at a speed and scale that few countries can match.

Behind this transformation is a system that author Dan Wang describes in his new book "Breakneck: China's Quest to Engineer the Future" as the "engineering state," a model defined by massive investments in infrastructure, strategic planning, and so-called "process knowledge" gleaned from the country's rapid industrial development.

Now, more and more, the Chinese government touts this development model as an example for other countries in the Global South to emulate.

Dan joins Eric to discuss whether the so-called "engineering state" is replicable elsewhere or if it's a uniquely Chinese phenomenon.

• Setting the Stage – China's rise from rural poverty to industrial superpower • The Engineering State – How China builds, plans, and organizes at a massive scale • Roots of the Model – East Asian development traditions and Soviet legacies • Infrastructure as Strategy – High-speed rail, bridges, airports, and the costs behind them • Industrial Capacity – Manufacturing clusters, supply chains, and process knowledge • The Speed Advantage – Why Chinese firms move faster than global competitors • Tech Transfer Debates – Joint ventures, old IP, and myths about forced transfers • Subsidies and Support – What Chinese industrial subsidies do—and what they don't • Exporting the Model – Limits of replication in Africa, Asia, and the Global South • The China Price – How scale, logistics, and workforce learning lock in dominance • Internal Tensions – Debt, underused infrastructure, and diminishing returns • Shifting Priorities – Xi's push away from consumer tech and toward strategic industries • Global Backlash – Overcapacity, trade pushback, and rising protectionism • Future Crossroads – Why China's development engine is losing momentum • Lessons for the Global South – What countries can adapt—and what they must avoid

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