As the United States marks 250 years since the signing of the Declaration of Independence this summer, there is no better time to reckon with one of the great myths of American economic life: that the country’s prosperity was built on laissez-faire capitalism. From its very founding, the US has had a hybrid model in which the state directs, subsidizes, and occasionally bails out private enterprise in the service of national priorities. While the prevailing narrative has often extolled free markets, policymaking itself has been more pragmatic.

Capitalism’s internal flaws raise barriers that impede the progress of Western values around the world. The frequent crises have led to an acute loss of faith in those values. In the long run, the West itself may become less Western.

Capitalism is in crisis and the China-US relations are in need of readjustment. Maybe the U.S. can borrow a page from China’s success story to close the wealth gap and bring about greater fairness in society.

Income disparity in China is among one of the many issues that could have been addressed at Sunnylands. However, as Michael Justin Lee points out, symbolism overshadowed substance at the first meeting of Presidents Xi and Obama.