Some of this is the natural arc of a huge, fast-growing country in the process of modernization. The U.S. in the late 19th century was nothing if not what Intel's Maloney would call an IMBY country. America was ambitious. There's no secret formula to help the nation get back its zeal for what it used to enthusiastically and sincerely call progress. But even though the U.S. is a mature, developed country, many economists believe it has shortchanged infrastructure investment for decades. It possibly did so again in this year's stimulus package. Just $144 billion of the $787 billion stimulus bill Congress passed earlier this year went to direct infrastructure spending. According to IHS Global Insight, an economic-consulting firm, U.S. spending on transportation infrastructure will actually decline overall in 2009 when state budgets are factored in — this at a time when the American Society of Civil Engineers contends that the U.S. should invest $1.6 trillion to upgrade its aging infrastructure over the next five years.

When the economic crisis hit China late last year, by contrast, almost half of the emergency spending Beijing approved — $585 billion spread over two years — was directed at projects that accelerated China's massive infrastructure build-out. "That money went into the real economy very quickly," says economist Albert Keidel of the Carnegie Endowment for International Peace.

But it's not just emergency spending on bridges, roads and high-speed rail networks that's helping growth in China. Patrick Tam, general partner at Tsing Capital, a venture-capital firm in Beijing, says the government is aggressively helping seed the development of new green-tech industries. An example: 13 of China's biggest cities will have all-electric bus fleets within five years. "China is eventually going to dominate the industry for electric vehicles," Tam says, "in part because the central government has both the vision and the financial wherewithal to make that happen." Tam, a graduate of MIT and the University of California, Berkeley, says he does deals in Beijing rather than Silicon Valley these days "because I believe this is where these new industries will really take shape. China's got the energy, the drive and the market to do it." Isn't that the sort of thing venture capitalists used to say about the U.S.?

2. Education Matters
On a recent Saturday afternoon, at a nice restaurant in central Shanghai, Liu Zhi-he sat fidgeting at the table, knowing that it was about time for him to leave. All around him sat relatives from an extended family that had gathered for a momentous occasion: the 90th birthday of Liu's great-grandmother Ling Shu Zhen, the still spry and elegant matriarch of a sprawling clan. But Liu had to leave because it was time for him to go to school. This Saturday, as he does every Saturday, Liu was attending two special classes. He takes a math tutorial, and he studies English.

Liu is 7 years old.

A lot of foreigners — and, indeed, a fair number of Chinese — believe that the obsession (and that's the right word) with education in China is overdone. The system stresses rote memorization. It drives kids crazy — aren't 7-year-olds supposed to have fun on Saturday afternoons? — and doesn't necessarily prepare them, economically speaking, for the job market or, emotionally speaking, for adulthood. Add to that the fact that the system, while incredibly competitive, has become corrupt.

All true — and all, for the most part, beside the point. After decades of investment in an educational system that reaches the remotest peasant villages, the literacy rate in China is now over 90%. (The U.S.'s is 86%.) And in urban China, in particular, students don't just learn to read. They learn math. They learn science. As William McCahill, a former deputy chief of mission in the U.S. embassy in Beijing, says, "Fundamentally, they are getting the basics right, particularly in math and science. We need to do the same. Their kids are often ahead of ours."

What the Chinese can teach are verities, home truths that have started to make a comeback in the U.S. but that could still use a push. The Chinese understand that there is no substitute for putting in the hours and doing the work. And more than anything else, the kids in China do lots of work. In the U.S., according to a 2007 survey by the Department of Education, 37% of 10th-graders in 2002 spent more than 10 hours on homework each week. That's not bad; in fact, it's much better than it used to be (in 1980 a mere 7% of kids did that much work at home each week). But Chinese students, according to a 2006 report by the Asia Society, spend twice as many hours doing homework as do their U.S. peers.

Part of the reason is family involvement. Consider Liu, the 7-year-old who had to leave the birthday party to go to Saturday school. Both his parents work, so when he goes home each day, his grandparents are there to greet him and put him through his after-school paces. His mother says simply, "This is normal. All his classmates work like this after school."