Modern China was not built completely on communist ideology nor by free market capitalism in its purest form. Capunism has elements of classical free market capitalism and parts of communism, neither making up the whole. Why capunism works in the AI ageThe AI revolution is different from the industrial revolution that it builds upon. Whether one agrees with China’s political system or not, its experience demonstrates that strategic coordination and market competition can coexist within a single economic model. A recently example includes the launch of advanced Chinese model Moonshot AI’s Kimi K3, which outperformed the world superior AI model i.e.