Process knowledge is difficult to measure, mainly because it exists in the patterns of relationships between people’s heads and other technical workers. We tend to call intangibles know-how, institutional memory, or tacit knowledge. They are attacked by an experienced workforce like Shenzhen. There, Subeone may work in the iPhone factory to start a drone company with rival mobile phone manufacturers next mobile phone… Shenzhen is an experienced workforce in the community producing high-end electronics. “Dan Wang, breakneck.”[1](74)
Dan Wang’s fierce people warn the US about weaknesses related to China. A key weakness is the outsourcing of the production of smartphones and other electronic devices. As part of its manufacturing process, Chinese managers and workers acquire tacit knowledge involved in design and operational factors. This lack of knowledge puts American workers at a competitive disadvantage.
The value of tacit knowledge has long been highly valued by economists. Kenneth Arrow writes about “learning through doing things,” and his insights have been extended by Paul Romer, Robert Lucas and others.
In his classic text, Principles of Economics (1890), Alfred Marshall was included in the chapter on the concentration of spare industries in a particular region. Marshall wrote,
Thus, when the industry chooses an ISelf environment, it is likely to stay for a long time. The advantage of people following the same skilled trade reaching one Echard from near the neighbour is enormous. The mystery of trade is not a mystery. But it is in the air and children learn a lot mercilessly. Good work is well valued, machine invention and improvements are underway, and business general organizations are being discussed immediately. If one man starts a new idea, it will be picked up by others and combined with their suggestions. Therefore, it becomes a source of further new ideas. Currently, supplementary transactions grow in the neighborhood and supply them towards tools and materials, organisational traffic, and in many ways towards the economy of that material.
Marshall’s observations were formalized by Paul Krugman in Krugman’s Nobel Prize-winning theory of cohesive economics.
The king wrote,
Overall, Chinese manufacturers employ more than 100 million people, about eight times the US. It is a large inventory of people who are driving the creation of new process knowledge. (page 80)
“Process knowledge acts like capital in terms of generating return on investment.”
Process knowledge acts like capital in terms of generating return on investment. It is the source of worker productivity and competitive advantage.
Why does China invest more investments in process knowledge than the US? Wang’s Ahesis is that China is a government made up of engineers, and America is a government made up of lawyers who do not understand the meaning of process knowledge.
China is an engineering nation, unable to stop buildings and blocks events by fighting against the American lawyer society. (Page 2)
He points out that as of 2002, all nine members of Chinee Politiburo’s Standing Committee had been trained as engineers.
What do engineers like to do? Build… since 1980… China has built a vast highway on highways that are twice as long as the US system, a high-speed rail network that is 20 times as high as the Japanese system, and almost as much solar and wind capacity as other parts of the world. (Page 3)
Meanwhile, the American leader is Tele’s lawyers.
Five of the last ten presidents attended law school. In any year, at least half of the US Congress holds a law degree, but at most a small number of members study science or engineering. From 1984 to 2020, all candidates for Democratic president and vice president all went to law school, but they constitute the top ranks of many Republican elites and civil servants… The United States was once an engineering country like China. However, in the 1960s, the priorities of elite lawyers changed drastically. As America was amazed at the unpleasant byproducts of the destruction of growth environment, excessive highway construction and corporate profits beyond the public interest, the focus of lawyers has shifted to litigation and regulation. (Pages 4-5)
Until the 1960s, the virtue of the American legal system was China, which did not provide such protection. Wang points out that Prime Minister Xi Jinping’s actions since 2021 have had a devastating impact on subs of major technology companies.
XI was rushing a string of regulatory lightning, including China’s biggest ride companies, Didi and ANT Financial, and includes Ant Financial, an Ant Financial, owned by China’s most well-known entrepreneur Jack MA. The founder of China’s high-tech (and its investors) were surprised to discover that Xi Jinping could erase $1 trillion from a company’s valuation for just a few months. (Page 7)
The King eloquently explains the scale of China’s construction. I described the province of Gyatso, which was far away and relatively poor until recently.
Guizhou has built 45 of the world’s tallest bridges. There are 11 airports and three more are under construction. There are 50 million highways… It’s you have about 1 million highways… The huge facility’s residential data center symbolizes the modern infrastructure that powers AI as well. (Page 27)
Still, there’s a note
The engineering state focuses primarily on monumentalism. There are public mecha toilets, but toilet paper is only available for sub-time. Nowhere in China recommends drinking tap water. Not even Shanghai. (Page 50)
Wang criticizes Chinese engineers for Oteforce’s approach to cultural issues. He has a chapter on the terrible impacts of one-child and zero-covid policies. However, he points out that it might be a good idea to stand up to cultural issues.
For example, what if the US government responded to the 2008 financial crisis by reshaping Wall Street’s risk management culture rather than involvement in the endless negotiations that brought about 2,300 pages of minors? (Page 183)
Wang criticizes the inability to build a lawyer society.
In 2021, Congress allocated $42 billion to expand broadband services to rural communities, known as the Internet. Four years later, there was no single home connected to this network. Two years after Congress allocated $7.5 billion to build electric vehicle charging stations across the United States, the operational scholarships are just 700 million. (Page 228)
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Overall, the king says,
I like to imagine how good the world would be if the BI superpower failed to adopt most of the pathology of others… I hope China will learn to cherish substantial legal protection for individuals and overturn the US’ ability to build for its people. (Pages 205-206)
In America, the king will improve his engineering position compared to his lawyer. In China, he opposes.
