Richard A. D'Aveni, Professor of Strategic Management

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Why the US Must Rely on Strategy to Beat Chinese State Capitalism

Over the last decade, free-market policies have lost their punch in creating jobs, new industries, wealth, and a bright future for the United States. Chinese state capitalism, on the other hand, has won round after economic round by violating free-market principles. Have those principles failed us? If so, why?

China has undercut those principles with an economic strategy to disrupt our free-market and open-trade system. U.S leaders have not mounted a potent response. They engage in piecemeal actions: lodging trade complaints with the World Trade Organization; railing about currency undervaluation; passing disjointed laws shaped by lobbyists; applying sporadic diplomatic pressure to reform China.

But tactics are not a strategy. And these tactics have not worked. Our massive trade deficit with China remains. 

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