Building things and breaking things in China (Summer School World Tour)

China’s

engineering state

model—led by leaders with technical degrees—prioritized massive infrastructure like bridges and airports, but led to malinvestment (e.g., 50 of the world's tallest bridges in a poor province) and ignored basic needs like clean water.

The real estate boom, fueled by bribery (e.g., $10,000 watches and million-dollar rings), created a bubble that burst when Xi Jinping declared 'houses are for living, not speculating,' leaving 90 million unsold homes and a debt crisis at Evergrand.

China faces a demographic crisis with a fertility rate of 1.0, and the government attempts to engineer population growth through neighborhood committees asking women about their menstrual cycles.

Young people in China, facing high unemployment and 996 work culture (9 a.m. to 9 p.m., six days a week), are quitting jobs and pursuing hobbies, supported by inheritance from grandparents under the one-child policy.

The U.S. could learn from China's building drive but should add regulation, adopting a 'capitalism with American characteristics' to avoid the perils of central planning.