Ten Years of Debate on the Origins of the Great Divergence between the Economies of Europe and China during the Era of Mercantilism and Industrialization
1. Smith, Marx and Weber
In 1899, before Theodore Roosevelt ran for national office, Secretary of State John Hay orchestrated an international agreement with six imperial powers to collectively guarantee the maintenance of free trade in Chinese ports, a potentially lucrative market for American goods and a primary cause of friction among covetous foreign traders.
In the West, it can be easy to forget just how closely China and the USSR were once bound in political imaginations. Today, the USSR is a land to which there is no return: a figment of past dreams and nightmares – whereas China is on everyone’s mind, a growing economic power that has shed its socialist past to move to the forefront of the new capitalist order.