Dynamic capabilities are foundational to competitive advantage, particularly in business environments characterized by deep uncertainty due to rapid technological change and geopolitical disturbances. Chinese firms are not just good imitators but also powerful innovators. Stereotypes must change, and American (and European) firms have much to learn from Chinese management: their speed of decision making, the commitment to innovation, and steadfast attachment to winning. Chinese government support should not be underestimated, and it has helped reinforce an ecosystem-building mentality of leading Chinese companies, which are emerging as more-than-a-match for many leading US tech firms. There are sobering lessons for Western executives and policy makers alike.
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