Expert Talk at BFA 2026 | Former U.S. Commerce Secretary on China's model and U.S.-China cooperation

At the 2026 Boao Forum for Asia, former U.S. Secretary of Commerce Carlos M. Gutierrez underscored the effectiveness of China's economic model, arguing that it has delivered tangible results and is unlikely to change. He noted that China's long-term, state-led investment strategy has driven success in key sectors, citing electric vehicles—where China began investing as early as 2012 and now holds around 50% of the global market—as well as the Belt and Road Initiative, which has grown into a $5.3 trillion undertaking. "It (the model) is working actually quite well," he said, adding that efforts by Western economies to reshape China's approach have historically faced significant challenges and are becoming even less feasible.

Gutierrez emphasized that the global economy must come to terms with the coexistence of two fundamentally different yet powerful systems. Rather than confrontation, he called for a pragmatic approach focused on coordination and mutual understanding. He added that one of the most critical challenges today is figuring out how the two models can work together—starting with recognizing that both systems are valid and finding pathways for cooperation.