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It’s also a bit different when you’re catching up due to interference/imperialism by foreign countries (like the US) in your country’s affairs from the past 100+ years.

Why wouldn’t the state help develop its industries?

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Just because somebody practiced imperialism against you in the past doesn't make you free from moral responsibility.

China's government is responsible only for its population. Moral responsibility isn't universal contrary to what liberalism says. This is a major, morally disarming agent that has turned pathological in NW Europe and US. What imperialism taught China is what the stick-end of liberalism feels like.

China was very much in a similar situation pre-WW2, significantly worse infact.

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