Chinese telecom-equipment maker Huawei has become a global corporate giant, yet security concerns from US officials have kept it from gaining a foothold in America, intensifying US-China tensions. In a time of great economic need, US desire for foreign direct investment from China is clashing...

How has China achieved its spectacular economic growth under reform, despite having no commercial law, no financial market, prices that are only partially freed, and no privatization? I argue that the fundamental reasons for China’s success are not unique to China. China succeeded because...