Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 635

Engineers vs lawyers: the US-China divide that will shape this century

‘No two peoples are more alike than Americans and Chinese… masses and elites are united in the faith that theirs is a uniquely powerful nation that ought to throw its weight around if smaller countries don’t get in line’, according to Dan Wang in his recent book, Breakneck: China’s Quest to Engineer the Future.

Wang sees these two countries as ‘thrilling, maddening, and, most of all, deeply bizarre’, but as ‘engines for global change’. The two countries are reconfiguring the international order and each other too. In contrast, ‘Europeans have a sense of optimism only about the past, stuck in their mausoleum economy’.

Wang was born in China and, at seven years of age, migrated with his parents to Canada, and then moved to the United States. He is currently a research fellow at the Hoover History Lab at Stanford University. He spent six years in China, from 2017 to 2023, as an economic and technology analyst and writer, and his book grew out of this experience.

Despite their commonalities, the US and China have fundamental differences, writes Wang. China would be an ‘engineering state’ whereas the US is a ‘lawyerly society’. Most Chinese Communist Party leaders have been engineers focused on building mega projects such as highways, bridges, fast trains and airports. Such construction has been a source of domestic and international political prestige. It has also been a key foundation for China’s rise as the world’s manufacturing powerhouse.

While Wang admires China’s engineering state, he argues that China’s physical engineers are often ‘social engineers’ who treat society as just another big optimisation problem. As an example, he offers a detailed analysis of China’s one-child policy. The policy inflicted much suffering on Chinese women through forced abortions and sterilisation and led to tragic femicide. But it was not effective in addressing China’s demographic challenges. Indeed, today the CCP is pushing women to have children!

Another example of wrong-headed social engineering was China’s zero-Covid policy which was ultimately ineffectual and abandoned following protests in Shanghai. Wang argues that over the past seven decades China has experienced lengthy periods of stability punctuated by government-triggered chaos. The Chinese state is usually level-headed but every so often succumbs to extreme, ineffective policies. In sum, Wang argues that the engineering state has remarkable strengths and appalling weaknesses—a more lawyerly society can help prevent these weaknesses.

Wang argues that the US used to be an engineering state. It enjoyed a big growth spurt between the 1850s and 1950s. During this period, it built canals, interstate railways and highways, the commercial airline system, and skyscrapers in Manhattan and Chicago. Then there was the Manhattan Project which produced the first nuclear weapons, and the Apollo program which landed the first humans on the Moon in 1969.

But the US engineering state made mistakes, triggering public opposition. Urban planners such as Robert Moses rammed highways through dense urban neighbourhoods; US government agencies sprayed pesticides, especially DDT; and some government regulators were captured by big business.

This provoked a backlash against the US’s engineering state, giving rise to the ‘lawyerly society’ as the country’s elite—dominated by lawyers focused on procedure and process rather than getting things done. Indeed, over the past 50 years the US has not been effective at maintaining and building infrastructure.

New York and other big cities have long had housing shortages. New York and California are ineffective at building mass transit compared with such places as Rome, Paris or Barcelona. The military-industrial complex is behind schedule in many projects. Even in the private sector, Detroit automakers and companies such as Intel and Boeing have many tales of woe, sapping the US’s dynamism.

Wang is critical of the offshoring of large parts of the US’s manufacturing sector to China, motivated by short-term profits. One consequence has been the loss of process knowledge, proficiency gained from practical experience, which is so critical for efficiency and flexibility. By contrast, Chinese workers who assembled the early versions of Apple’s iPhone were able to turn their newly acquired skills to making other products, such as drones.

Wang’s analysis can seem simplistic as it reduces much of America’s and China’s challenges and differences to the roles of engineers and lawyers. And it is not clear how their roles could be wound back, as Wang recommends. But Wang’s book is of great value as it offers many insights based on firsthand experience in China. While the engineering state has many inefficiencies, notably excess capacity and overproduction, Wang argues it is enabling the top five percent of Chinese companies to be technological leaders and challenge the US in fields including AI, semiconductors, biotechnology and renewable energy.

 

John West is Executive Director of the Asian Century Institute and author of the book, “Asian Century … on a Knife-edge”. He has had a long career in international economics and relations, with major stints at the Australian Treasury, OECD, Asian Development Bank Institute, and Tokyo’s Sophia University. This article was originally published on The Australian Strategic Policy Institute Blog The Strategist.

 

  •   29 October 2025
  • 7
  •      
  •   
7 Comments
Franz
October 30, 2025

I think too much effort in the US and here is focussed on accumulating wealth rather than generating it.

DougC
October 31, 2025

A nation’s development has always been through technology (science and engineering). The US is currently degrading development by cutting research funding, denigrating science and limiting trade. China is promoting development by doing exactly the opposite. Guess which nation will advance.

Steve
November 02, 2025

Most Chinese Communist Party leaders have been engineers. How different to our Labor leaders who haven't built a thing in their collective lives, except bureaucracies.

Dudley
November 03, 2025


"Most Chinese Communist Party leaders have been engineers.":

Not money managers. Build stuff, by product piles of debt.

Not representatives. Ask 'leaders' to 'step down' is to 'disappear'.

stefy01
November 04, 2025

Perhaps someone could write a book "Engineers vs Baristas: the US-Australia divide".

Denudata
November 23, 2025

The message of Dan Wang is similar to Karl Popper's " Open Society". Popper advocated "piecemeal engineering" instead of iconoclastic ideals.

Joel Mokyr, the 2025 winner of the Nobel Prize, provides a similar analysis of successful economies.

 

Leave a Comment:

RELATED ARTICLES

Welcome to the grey war

Concerns about China's rise to power seem overblown

The pivotal fight between China and the US

banner

Most viewed in recent weeks

Australian stocks will crush housing over the next decade, 2025 edition

Two years ago, I wrote an article suggesting that the odds favoured ASX shares easily outperforming residential property over the next decade. Here’s an update on where things stand today.

Building a lazy ETF portfolio in 2026

What are the best ways to build a simple portfolio from scratch? I’ve addressed this issue before but think it’s worth revisiting given markets and the world have since changed, throwing up new challenges and things to consider.

Get set for a bumpy 2026

At this time last year, I forecast that 2025 would likely be a positive year given strong economic prospects and disinflation. The outlook for this year is less clear cut and here is what investors should do.

Meg on SMSFs: First glimpse of revised Division 296 tax

Treasury has released draft legislation for a new version of the controversial $3 million super tax. It's a significant improvement on the original proposal but there are some stings in the tail.

Property versus shares - a practical guide for investors

I’ve been comparing property and shares for decades and while both have their place, the differences are stark. When tax, costs, and liquidity are weighed, property looks less compelling than its reputation suggests.

10 fearless forecasts for 2026

The predictions include dividends will outstrip growth as a source of Australian equity returns, US market performance will be underwhelming, while US government bonds will beat gold.

Latest Updates

Economy

Ray Dalio on 2025’s real story, Trump, and what’s next

The renowned investor says 2025’s real story wasn’t AI or US stocks but the shift away from American assets and a collapse in the value of money. And he outlines how to best position portfolios for what’s ahead.

Superannuation

No, Division 296 does not tax franking credits twice

Claims that Division 296 double-taxes franking credits misunderstand imputation: franking credits are SMSF income, not company tax, and ensure earnings are taxed once at the correct rate.

Investment strategies

Who will get left holding the banks?

For the first time in decades, the Big 4 banks have real competition in home loans. Macquarie is quickly gain market share, which threatens both the earnings and dividends of the major banks in the years ahead.

Investment strategies

AI economic scenarios: revolutionary growth, or recessionary bubble?

Investor focus is turning increasingly to AI-related risks: is it a bubble about to burst, tipping the US into recession? Or is it the onset of a third industrial revolution? And what would either scenario mean for markets?

Investment strategies

The long-term case for compounders

Cyclical stocks surge in upswings but falter in downturns. Compounders - reliable, scalable, resilient businesses - offer smoother, superior returns over the full investment cycle for patient investors.

Property

AREITs are not as passive as you may think

A-REITs are often viewed as passive rental vehicles, but today’s index tells a different story. Development and funds management now dominate earnings, materially increasing volatility and risk for the sector.

Australia’s quiet dairy boom — and the investment opportunity

Dairy farming offers real asset exposure, steady income and long-term growth, yet remains overlooked by investors seeking diversification beyond traditional asset classes.

Sponsors

Alliances

© 2026 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.