In light of the mounting hurdles to free enterprise in the American marketplace, China’s eagerness to promote business and create jobs naturally appears quite impressive to the United States business community. This is an unfortunate reality with which American policymakers must wrestle. Meeting the challenge of China’s political and economic rise requires seeing its limitations clearly. But it also demands that America’s political leaders take the necessary steps to make their own economy more competitive, more agile, and friendlier to the free market. In that vein, doing what many American business leaders advocate—fixing the budget, lowering the burden of entitlements, implementing a sound debt-reduction plan, taking away disincentives for businesses to repatriate earnings from overseas, and reducing regulatory red tape—would be a good start.