Principles for Dealing with the Changing World Order: Why Nations Succeed and Fail

by Ray Dalio

All of these Chinese systems are hierarchical and nonegalitarian. Wang Qishan, the vice president of China and a remarkable historian and explorer of different cultures, told me that the core difference between Americans and the Chinese is that Americans hold the individual above all else while the Chinese put the family and the collective above everything. America is run from the bottom up (e.g., democracy) and optimized for the individual; China is run from the top down and optimized for the collective. The Chinese word “country” consists of the two characters for “state” and “family,” he explained, so Chinese leaders seek to run their state the way they think parents should run their families, with each person knowing their place and having filial respect for those above them. As a result, the Chinese are more humble, respectful, and rules-bound, while Americans are more arrogant, egalitarian, and rules-averse. I’ve observed that while the Chinese are more interested in asking questions and learning, Americans are more interested in telling you what they think.