ALL THE PROBLEMS OF 1980's JAPAN WITHOUT ANY OF THE ADVANTAGES:

For the past decade or more, China has been seen as an unstoppable economic colossus that will soon not only become the world's largest economy but achieve preeminence in many if not most key industries. But according to George Calhoun, this narrative is incorrect. As long as the country is run by a Chinese Communist Party focused first and foremost on maintaining political control, he says, China will never develop the innovative capacity of the U.S. and other Western countries and will inevitably remain an economic also-ran, particularly in the cutting-edge technology sector. Nowhere is this truer than in the all-important semiconductor industry, says Calhoun, who is a professor at Stevens Institute of Technology.

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