Arthur R. Kroeber

“Like many successful Chinese firms, it is caught at the bottom of what Taiwanese technology baron Stan Shih famously called the “smile.” Shih observed that in the tech industry, high profits are earned at one end by companies that control the design of core technologies (such as Intel), and at the other by companies that control the design and distribution of products to consumers (such as Apple). In between are commodity firms that manufacture and assemble the products, in high volumes but for low profit margins. Taiwan is filled with such low-margin bottom-of-the-smile firms, such as Shih’s own Acer, TSMC (the world’s biggest contract maker of integrated circuits), and Foxconn (the world’s biggest contract assembler of consumer electronics). For the most part, China’s technology companies seem to be heading in the same direction.”
― Arthur R. Kroeber, China's Economy: What Everyone Needs to Know

“Deng’s judgment about the importance of strong economic growth was later validated by a series of studies of the collapse of the USSR conducted by party scholars in the 1990s. These scholars concluded that the Communist Party of the Soviet Union (CPSU) fell for four main reasons: •  The economy did not grow fast enough, leading to frustration and resentment, and this failure resulted from insufficient use of market mechanisms. •  The CPSU’s propaganda and information systems were too closed and ideologically rigid, preventing officials from getting accurate and timely knowledge about conditions both inside and outside the Soviet Union. •  Decision-making was far too centralized, and hence far too slow. •  Once reforms started under Gorbachev, they undermined the core principle of the party’s absolute monopoly on political power.14”
― Arthur R. Kroeber, China's Economy: What Everyone Needs to Know