Book Review: "Breakneck"

There was a time in 2016 when I walked around downtown San Francisco with Dan Wang and gave him life advice. He asked me if he should move to China and write about it. I told him that I thought this was a good idea — that the world suffered from a strange and troubling dearth of people who write informatively about China in English, and that our country would be better off if we could understand China a little more.

Dan took my advice, and I’m very glad he did. For seven years, Dan wrote some of the best posts about China anywhere on the English-speaking internet, mostly in the form of a series of annual letters. His unique writing style is both lush and subtle. Each word or phrase feels like it should be savored, like fine dining. But don’t let this distract you — there are a multitude of small but important points buried in every paragraph. Dan Wang’s writing cannot be skimmed.

I’ve been anticipating Dan’s first book for over a year now, and it didn’t disappoint. Breakneck: China's Quest to Engineer the Future brings the same style Dan used in his annual letters, and uses it to elucidate a grand thesis: America is run by lawyers, and China is run by engineers.

Dan starts the book by recapitulating an argument that I’ve often made myself — namely, that China and the United States have fundamentally similar cultures. This is from his introduction:

I am sure that no two peoples are more alike than Americans and Chinese.

A strain of materialism, often crass, runs through both countries, sometimes producing veneration of successful entrepreneurs, sometimes creating displays of extraordinary tastelessness, overall contributing to a spirit of vigorous competition. Chinese and Americans are pragmatic: They have a get-it-done attitude that occasionally produces hurried work. Both countries are full of hustlers peddling shortcuts, especially to health and to wealth. Their peoples have an appreciation for the technological sublime: the awe of grand projects pushing physical limits. American and Chinese elites are often uneasy with the political views of the broader populace. But masses and elites are united in the faith that theirs is a uniquely powerful nation that ought to throw its weight around if smaller countries don't get in line.

It's very gratifying to see someone who has actually lived in China, and who speaks Chinese, independently come up with the same impression of the two cultures! (Though to be fair, I initially got the idea from a Chinese grad student of mine.)

If they're so culturally similar, why, then, are China and the U.S. so different in so many real and tangible ways? Why is China gobbling up global market share in every manufactured product under the sun, while America’s industrial base withers away? Why did China manage to build the world’s biggest high-speed rail network in just a few years, while California has yet to build a single mile of operational train track despite almost two decades of trying? Why does China have a glut of unused apartment buildings, while America struggles to build enough housing for its people? Why is China building over a thousand ships a year, while America builds almost zero?

Dan offers a simple explanation: The difference comes down to who runs the country. The U.S. has traditionally been run by lawyers, while the Chinese Communist Party tends to be run by engineers. The engineers want to build more stuff, while lawyers want to find a reason to not build more stuff. (...)

Breakneck’s thesis generally rings true, and Dan’s combination of deep knowledge and engrossing writing style means that this is a book you should definitely buy. Its primary useful purpose will be to make Americans aware that there’s an alternative to their block-everything, do-nothing institutions, and to get them to think a little bit about the upsides and downsides of that alternative.

I bring up my main concerns about Dan’s argument: How do we know that the U.S.-China differences he highlights are due to a deep-rooted engineer/lawyer distinction, rather than natural outgrowths of the two countries’ development levels? In other words, is it possible that most countries undergo an engineer-to-lawyer shift as they get richer, because poorer countries just tend to need engineers a lot more?

I am always wary of explanations of national development patterns that rely on the notion of deep-rooted cultural essentialism. Dan presents America’s lawyerly bent as something that has been present since the founding. But then how did the U.S. manage to build the railroads, the auto empires of Ford and GM, the interstate highway system, and the vast and sprawling suburbs? Why didn’t lawyers block those? In fact, why did the lawyers who ran FDR’s administration encourage the most massive building programs in the country’s history?

And keep in mind that America achieved this titanic share of global manufacturing while having a much smaller percent of world population than China does.

That’s an impressive feat of building! So even though most of America’s politicians were lawyers back during the 1800s and early 1900s, those lawyers made policies that let engineers do their thing — and even encouraged them. It was only after the 1970s that lawyers — and policies made by politicians trained as lawyers — began to support anti-growth policies in the U.S. (...)

There are several alternative explanations for the trends Dan Wang talks about in his book. One possibility, which Sine argues for, is that China’s key feature isn’t engineering, but communism. Engineers like to plan things, but communists really, really like to plan things — including telling people to study engineering.

Another possibility is that engineering-heavy culture is just a temporary phase that all successfully industrializing countries go through during their initial rapid growth phase. When a country is dirt poor, it has few industries, little infrastructure, and so on. Basically it just needs to build something; in econ terms, the risk of capital misallocation is low, because the returns on capital are so high in general. If you don’t have any highways or steel factories, then maybe it doesn’t matter which one you build first; you just need to build.

by Noah Smith, Noahpinion |  Read more:

Image: Jonothon P. Sine

[ed. I've mentioned Dan's annual China summaries before (see here, here and here). When 2025 rolled around and none appeared I wrote and asked if he was still planning something. That's when he told me about this book. Definitely plan to pick it up.]