US vs. China: one forgot how to build, the other how to stop

This article summarizes an episode of WSJ’s video series featuring Dan Wang, a research fellow at the Hoover Institution.

Dan Wang, research fellow at the Hoover Institution, Stanford University / Photo credit: Stripe

America’s famous companies that make things are struggling, but the problem is bigger than just closed-down factories. According to Dan Wang, a research fellow at the Hoover Institution at Stanford University, the country is forgetting how to build things.

In his book “Breakneck,” Wang describes the competition between the US and China as a conflict between their different ways of life. China is like a “country of builders” that creates things very quickly, while the US has become a “society of rules” that gets slowed down by its own procedures.

Different ways of getting things done

To understand the rivalry with China, it’s necessary to look beyond old political terms. Wang suggests looking at the work culture that shapes each country.

• A country of builders: For a long time, China’s leaders have mostly been engineers. This creates a culture that tends to solve problems by building huge things like bridges and railways. This approach focuses on getting things done big and fast, rather than worrying about disagreements or following strict rules.
• A society of rules: The United States is shaped by a culture of laws and procedures. While this protects people’s rights and makes sure everything is done fairly, it also creates a system that can stop both good and bad projects, which greatly slows down construction.

A clear contrast in action
The difference between the two nations’ approaches is clear when looking at high-speed rail.

“In 2008, China began construction of its most profitable highspeed rail line connecting Beijing and Shanghai. 3 years later, China actually completed the Beijing to Shanghai highspeed rail system,” Wang says. “And over the first decade of its operation, this rail moved about 1.3 billion passenger trips.”

The American experience offers a sharp contrast. “What has happened in California since 2008? Well, here we are in 2025. They’ve really reduced their ambitions… it is slated to open this first segment somewhere around 2030 to 2033,” Wang points out. “But the Chinese were able to do this in three years.”

The hidden cost of a decline in making things

This different way of doing things has real effects. Wang observes America’s key manufacturing industries are collapsing. This problem affects everything from basic supplies to the nation’s top companies.

Rust at the top
Wang is blunt, saying “the US manufacturing base has rusted from top to bottom… if you take a look at America’s apex manufacturers… I would point to Intel to Boeing to the automotive sector… almost always the headlines are a tale of woe about these big manufacturers.”

From swabs to shells
This isn’t just a high-tech problem. Wang observes the decay affects simple production too.

“At the start of the pandemic… manufacturers had a really hard time shipping products that were relatively simple, like masks and cotton swabs… if you take a look at some pretty critical military goods, something like munitions, the US hasn’t really been able to get munition shells restarted either.”

Forgetting how to build

The problems these companies face show there’s a bigger issue than just old factories or equipment. Having the plans for something is different from having the practical skill to actually build it. And according to Wang, that skill is disappearing in the US.

When building and planning targets society

The government becomes the hunter of its own success