Grumpy Chinese Guy

China’s Real Advantage: When Algorithms Serve People, Not Profit

The next global conflict isn’t socialism versus capitalism. It’s about who controls the algorithms that run society.

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Neil Zhu
Oct 22, 2025
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I. The Wrong Debate

Every time people argue whether China is socialist or capitalist, I can’t help but think that this debate is outdated. We’re no longer living in the 20th century. The world runs on data now, not dogma.

What really matters is who controls the algorithm. Because in today’s world, algorithms are the new laws. They decide who gets a job, who gets credit, what news you see, and even how you think.

China’s advantage has nothing to do with ideology. It lies in how the system uses power. It mixes planning and markets, but the purpose stays clear: people come before profit. That’s what most Western economies forgot long ago.

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II. How the System Works

1. Beyond Ownership

People still talk about socialism and capitalism as if the world were black and white. But ownership doesn’t define a system anymore. China has both state and private sectors. So do the U.S. and Canada. Canada’s land is 89 percent public. The U.S. government can seize property whenever it wants. Trump even forced private firms to sell shares to the state.

So the real question isn’t who owns what, it’s why ownership exists, and who benefits from it. That’s where China and the West begin to diverge.

2. People First vs. Capital First

In China, the economy exists to serve people. In America, people exist to serve the economy.

Look at telecom. China Mobile could have charged more and made massive profits. Instead, the state told them to cut prices and build rural networks. That decision built the entire e-commerce ecosystem that later gave birth to Alibaba and Tencent.

Or take the railway system. China keeps expanding high-speed rail into poor regions, even when it loses money. During the Spring Festival rush, ticket prices stay the same. That’s not efficiency in the capitalist sense, but it’s civilization in the social sense.

This is why I say: in the U.S., markets shape policy; in China, policy shapes markets.

3. A Historical Pattern

None of this is new. It’s part of China’s civilizational logic. For thousands of years, the state balanced central power with local energy. Qin standardized the economy. Han built state industries. Tang managed trade through flexible taxes. Ming used state merchants to stabilize markets.

The point isn’t ideology. It’s survival. China learned how to prevent collapse by never letting capital overpower the state. That’s why it adapts instead of breaks.

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