China as a model

A perennial theme of this blog is that we should prefer structural rather than supervisory solutions to regulatory problems.

I doubt it was predicted or designed, but when the practice emerged of delegating industrial policy to local governments, China invented a structural form of antitrust. The central state declares what industries are to be favored, and then many localities toss contenders into the ring. The unsurprising result is competition. At the national level, with astonishing speed, industries with world-class competences emerge, even when — especially when — no "national champion" comes to dominate.

• Steve Randy Waldman