This study examines how the People’s Republic of China’s advance of its economic and other objectives both supports, and benefits from the challenges by illiberal states to the rules-based international order. It argues that one of the most important dynamics of the current international system is how, in the context of interdependence and interaction accelerated by new technologies, the feedback loop between those activities of the PRC, and its international partners, are simultaneously enriching and empowering the PRC, and expanding the space in which such illiberal actors can operate, while also weakening the institutions and rule of law which have created the basis for interdependence, security, and prosperity since the end of the Second World War. This work recognizes the variety of goals of illiberal actors with which the PRC engages for its own benefit, distinguishing the dynamic from the structure of competing “blocks” that characterized the Cold War. This work further looks at the interaction between political and economic systems under stress new technologies, and the role of the state in this transformational period, It argues that the new dynamic is reopening fundamental questions about the relationship between the state, individual, and society, and associated questions about economic and political organization itself is in question. In addressing these challenges, this work concludes that transactional “competition” between Western democracies and their opponents for the loyalties of the rest is not enough. It argues that that Western democracies must both hedge against the coming destabilization of the international system, while leading by example and advancing more compelling arguments in the new context for why societal interests are best served by the protection of individual rights and individual choice as the foundation of government legitimacy, as well as for individual ownership and initiative, rather than government as the principal generator of economic value and technological progress in society.
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