Interesting article, but a lot of the content is misleading.
The authors conveniently forgot about Japan-US Semiconductor Agreement,
"voluntary" restraints on Japanese car exports to the US, and the lengths US went through to prop up Intel and AMD against Japanese competitors.
In what regards exactly? Chinese state-owned enterprise manage critical sectors including infrastructure and defense. They aren't the prettiest sectors, but the performance of SOEs still vastly outperform their private US counterparts in terms of innovation. Where are the US technological equivalent for:
- Ultra high voltage transmission, especially over long distances?
- Automated grid control/integration?
- High speed rail/maglev?
- LNG tanker production, or civil/military shipbuilding capacity in general?
- 6th generation fighter and unmanned air superiority drones?
Even in automotive industry, where Chinese state-owned enterprises are often criticized, they are still much more innovative than their private US counterparts. Does any US manufacturer offer a car with semi-solid state battery, let alone one for $14K?
I do agree with the premise of the article that Japan has a more cooperative, cartel type environment through the various Keiretsu, which hampers innovation compared to more cut-throat environment as in the case of US and China. But in my opinion it's the US, not China that's losing that edge.