China also uses Capital to invest. They have one of the largest capital markets in the world. I think what you do not like is not capitalism but free markets or the extent of freedom of the agents in those markets. But no matter what capital is the best way to industrialize a nation and this has been proven in Japan, Korea and China.
>the outsourcing of much of the hardware manufacturing base overseas has resulted in a decrepit technological base.
This is nonsense. All this shows to me is that you are not aware of the current semiconductor supply chain of which the US is a large member. And I suggest you find out how democratic the "hiring and promotion policy" is in Korea, or how concentrated the wealth is there.
America closed Radio Shack stores that used to provide hobbyists with all kinds of electronic components (before it tried to become a little version of Best Buy). In contrast, China has Shenzhen. Interestingly they seem to be engaged in state-sponsored VC-like activities:
I'm not sure what point you're making. Driving the current state of the art in semiconductors requires something like a PhD in physics or materials science. There are certainly many PhDs in China (and being educated is more respected there than here) but Radio Shack and Shenzhen pcbs have little to do with this. They aren't growing the state of the art. Have you looked into the "democratic internal hiring and promotion policy" of those Shenzhen factories by the way? Shenzhen is as far from communism as you can get. Marx described workers being "a slave of the machine" as an inherent quality of Capitalism: and he is right (until these things can be automated).
I have no doubt that Chinese semiconductor output will increase in quantity and quality. I also have no doubt that it will be sold on the global market for capital and that capital will be the primary way the owners and workers of those companies are rewarded as well as the means used to create and grow the company.
Also, Radio Shack closed down because its customers moved online – that is simple supply and demand.
>the outsourcing of much of the hardware manufacturing base overseas has resulted in a decrepit technological base.
This is nonsense. All this shows to me is that you are not aware of the current semiconductor supply chain of which the US is a large member. And I suggest you find out how democratic the "hiring and promotion policy" is in Korea, or how concentrated the wealth is there.