People assuming the worst mostly. US intelligence used to always overestimate Soviet capabilities too. Usually by a large margin.

It’s a bit terrifying when you realize that the people at the top don’t know what they are doing either. Much of the world runs on guesswork and inertia. This is also true of most companies.

"It’s a bit terrifying when you realize that the people at the top don’t know what they are doing either. Much of the world runs on guesswork and inertia."

In my early 20's this 'discovery' shocked me

Yeah, as an adult in late twenties, I am realizing this fact as well. Nobody has any idea on what they are doing, world is in chaos.

China doesn't have to deal with a lot of the "complications" that the Western governments have to deal with, like human rights, etc. This gives those in power the potential to achieve their goals more efficiently.

Not saying this is how it actually ends up, but they certainly are prepared to use a lot of leverage tools that are not available to more free countries.

“...[The Russians] have an immense advantage. I think it’s a dangerous advantage and a temporary advantage. Twelve men decide what to do. They don’t sit here like I do and have twelve others question me on why I’m doin’ it... In the end they destroy themselves.” —General George Marshall https://youtu.be/Y7eVaVUESCo

Because we can't see what's going on inside the Chinese government so they get benefit of the doubt. In contrast we know exactly how the local sausage is made.

Or that government should be, could be less incompetent than corporations?

People are just people. Organizational psychology is universal. Bit rot is inevitable.