The Chinese model is not new. It's called mercantilism, and this was the predominant economic development model before Adam Smith's free trading capitalist cri

The Chinese model is not new. It's called mercantilism, and this was the predominant economic development model before Adam Smith's free trading capitalist critique of mercantilism. http://en.wikipedia.org/wiki/Mercantilism http://en.wikipedia.org/wiki/Mercantilism This is how the United States developed in the past. Alexander Hamilton's economic strategy for the United States followed a similar script. See his Report on Manufactures: http://en.wikipedia.org/wiki/Report_on_Manufactures http://en.wikipedia.org/wiki/Report_on_Manufactures This report was read by Friedrich List, who then wrote a similar development strategy for the 19th C. German economy. It was this strategy that made the German industrialization so rapid and effective. http://en.wikipedia.org/wiki/Friedrich_List http://en.wikipedia.org/wiki/Friedrich_List There are a number of spectators who have correctly characterized China's model as modern-day mercantilism (even though they disagree on specifics and the appropriate response): Krugman: http://krugman.blogs.nytimes.com/2009/12/31/macroeconomic-effects-of-chinese-mercantilism/ http://krugman.blogs.nytimes.com/2009/12/31/macroeconomic-ef... NRO: http://www.nationalreview.com/nrof_bartlett/bartlett200311050823.asp http://www.nationalreview.com/nrof_bartlett/bartlett20031105... See also: http://www.associatedcontent.com/article/1764172/china_mercantilism_and_new_global_economic.html http://www.associatedcontent.com/article/1764172/china_merca... and http://chinaconfidential.blogspot.com/2006/06/mercantilism-with-chinese_23.html http://chinaconfidential.blogspot.com/2006/06/mercantilism-w...