China is half private enterprise (private capitalism if you wish) & half State Capitalism (Communism if you wish)#
The Chinese hybrid is challenging US Capitalism because: (a) In times of Crisis (US GFC & Covid) the US State has to step in to save the system by socialising losses (State Socialism) & spending via credit.(massive accumulation of debt)## (b) China already has that provision built into its State Capitalism section of its economy. (c) China's command economy can act/react quicker to stimulate economic growth & avert recession (d) While Liberty (Freedom within the law) is highly valued by Americans, that is sacrificed for economic growth by the Chinese system (e) China's SOEs add stability to goods & services supply while the US privatised service industries can have issues (EG: Enron etc) (f) China's SOEs can directly react to regional development while the US system essentially "follows the market (EG : The Rust Belt) (g) China still has capital punishment or long term jailing for corporate tax evaders officials which "encourages' Corporate Tax Payments.
I would like to see the US restructure itself to remedy its intrinsic weaknesses while at the same time retain a high level of personal liberties without over-regulating or over-relying on its current military dominance to retain global hedgemony In other words, lead by example rathet than by force.
## Keep in mind that the USSR collapsed because of debt accrued during the Cold War Arms Race & The Bitish Empire collapsed due to accumulated Debt caused by WW1 & 2. This is why excessive Soverign debt threatens a country's Soverignty, IMO. I know that some advocates of "money printing" flippantly dismiss this and cite MMT as the out. #Also keep in mind that Mussolini's Italy, Hitler's Germany & Stalin's Russia were State Capitalist Regimes while we prefer to label the USSR as Communist & 1930s Italy & Germany as Fascist.
