Planned obsolescence of capitalism versus sustainable Chinese alternatives: a clash of ideologies

We are pleased to republish below an interesting opinion piece by Bhabani Shankar Nayak, arguing that the fierce hostility of Western elites toward China stems to a significant degree from an ideological clash between neoliberal capitalism and China’s alternative development model. Unlike the US system – driven by profit and sustained through planned obsolescence – China promotes long-term, sustainable, people-centred development aimed at public well-being and common prosperity.

Bhabani includes examples such as China’s breakthrough in nuclear battery technology by Betavolt, with a 50-year lifespan that threatens the Western consumer electronics model reliant on constant upgrades. Similarly, China’s Cross-Border Interbank Payment System (CIPS) challenges US financial dominance by providing an alternative to the SWIFT network. These innovations, alongside China’s space program and infrastructure development, reflect a vision rooted in durability and public interest rather than profit.

The article critiques the Schumpeterian notion of ‘creative destruction’ as a myth that masks the exploitative nature of innovation under capitalism, whereby the creative potential of labour is entirely subordinated to private profit. It argues that capitalism commodifies both material goods and human emotions, perpetuating waste and insecurity.

In contrast, China offers a civilisational alternative that fundamentally threatens both the economic viability and ideological foundations of capitalism. This dynamic is a major part of what drives the ongoing campaign to contain and encircle China and to suppress its rise.

Bhabani Shankar Nayak is a Professor of Business Management at London Metropolitan University. He is the author or editor of numerous books and articles on China and other issues related to development in the Global South. This article was first published in Countercurrents.

Why do the American ruling elites, both in the Republican and Democratic parties, oppose China so strongly?

Since taking office, President Donald Trump imposed tariffs of up to 145% on Chinese goods. But it doesn’t stop at trade and tariffs. The American imperialist strategy—marked by political, economic, and military bullying—continues in an unprecedented scale in an effort to pressure China into submission under imperialist hegemony. The core objective is to undermine China’s development and its alternative path, which challenges the foundations of the capitalist system.

What has China achieved that fundamentally challenges the very foundation of American capitalism?

One striking example is the development of a miniature nuclear battery by the Chinese company Betavolt, with support from the Chinese government. This battery boasts a lifespan of 50 years, eliminating the need for recharging in devices such as mobile phones and electric vehicles. Such a breakthrough not only renders frequent charging obsolete but also disrupts the business models of American and European electronics companies, which rely heavily on planned obsolescence—a strategy that encourages repeated consumption through short-lived products and continual upgrades. For example, Apple Inc. products like iPhones continuously changes every year.

China has not only developed its own space station and lunar exploration program but has also created an international transaction system known as the Cross-Border Interbank Payment System (CIPS). This system has the potential to completely bypass the Western-dominated SWIFT (Society for Worldwide Interbank Financial Telecommunication) network used for global banking and international transactions.

These are just a few examples of the achievements stemming from China’s scientific, political and economic system, which fundamentally contrasts with the American and European capitalist model. Unlike the Western approach, which is largely driven by profit, China’s scientific and technological advancements are geared toward improving the well-being of its people and promoting sustainable development and long-term prosperity. Such alternatives pose a direct challenge to the American-led imperialist capitalist order—one that the ruling elites find deeply threatening and, therefore, unacceptable to their capitalist hegemony.

The Schumpeterian notion of capitalism as a process of “creative destruction”—where innovation leads to the replacement of outdated industries by newer, more efficient ones—is, in reality, a myth. The Schumpeterian sympathy for capitalism stems from its lenient understanding of capitalist innovation. What is truly creative and innovative is labour itself. However, under capitalism, the creative potential of labour is not liberated but rather controlled and exploited to sustain and expand a profit-driven system. Capitalism continually restructures itself to either accommodate or dominate the productive and creative capacities of labour. This dynamic reinforces the strategy of planned obsolescence, accelerating the exploitation of both nature and human beings—as producers and consumers.

Rapid technological advancement, rather than serving human progress, is often harnessed to sustain this exploitative system. The capitalist logic of planned obsolescence deliberately designs products with artificially limited lifespans, ensuring they become quickly outdated. This fuels a “use-and-throw” culture—one that perpetuates constant consumption and reinforces commodity dependency. Far from promoting genuine innovation, this cycle serves to undermine it, replacing durable progress with short-term profitability.

Technological progress under American and European capitalism is primarily driven by the logic of planned obsolescence. It functions not to meet genuine human needs, but to manufacture ever-new desires for commodity-based consumption. Products and services are deliberately designed with short lifespans, encouraging constant replacement and repeat purchases—strategies rooted in corporate interests aimed at sustaining perpetual profit. This cycle not only accelerates the depletion of natural resources but also fuels consumer anxiety, particularly through the psychological pressure of the “fear of missing out.” In this way, capitalism commodifies both material goods and emotional experience, reinforcing a culture of disposability and dependency.

However, China’s scientific and economic progress is guided by a long-term vision centered on the well-being of its people—an approach fundamentally opposed to the capitalist strategy of planned obsolescence. Unlike the American and European market-led systems, which prioritise profit based on exploitation, the Chinese model places public welfare at the core of its technological and developmental agenda. This alternative model threatens the very foundations of Western capitalism by offering a path rooted in sustainability, resilience, and durability—countering the wasteful “use-and-throw” culture that has emerged from capitalist cycles of consumption and planned obsolescence.

In this context, China presents not just a geopolitical rival, but a civilisational alternative—one that challenges the dominance of profit over people. It is precisely because of this that American imperialism, along with its European allies, relentlessly seeks to undermine and weaken China and its achievements. The fear is not merely rooted in economic competition, but in the example that China sets: a political model of planned economic development grounded in peace, progress, and prosperity—one that dares to envision a future beyond capitalist exploitation and its foundation in planned obsolescence.