A Theory of Asymmetric Industrial Dependency
I. Theoretical Overview
The “Industrial Fentanyl Model” is a hypothetical political–economic framework describing how structural dependency can emerge between two unequal economic systems through long-term trade competition.
It refers to a situation in which:
A high-cost liberal market economy gradually becomes structurally dependent on a low-cost, tightly controlled production economy.
The metaphor of “fentanyl” reflects the mechanism of addiction:
Initial phase → Price advantage creates consumer “euphoria” (cheap goods)
Intermediate phase → Domestic industry weakens
Final phase → Structural dependency forms, making disengagement extremely costly
This is an abstract structural model, not a direct claim about any specific country.
II. Structural Assumptions of the Model
We define two hypothetical states:
Country A: A developed liberal capitalist economy
Country C: A populous, low-cost, centrally controlled economy
1. Cost Structure Assumptions
In Country A:
Product price = a
(includes higher labor costs, welfare costs, regulatory and environmental costs)
In Country C:
Production cost = c₀ (extremely low)
Domestic selling price = c₁
Export price to merchant B = c
Merchant B’s selling price in Country A = b
With the inequality:
c₀ < c₁ < c < b < a
Thus, goods from Country C are significantly cheaper in Country A’s market.
III. Cost Compression Mechanisms in Country C
The model assumes that Country C achieves ultra-low production costs through systemic cost compression mechanisms.
(1) Agricultural Compression
State policies suppress agricultural prices.
Farmers are compelled to sell grain at low margins.
Industrial workers benefit from artificially low food prices.
Result:
The subsistence cost baseline for labor is lowered.
(2) Labor Compression
Macroeconomic controls limit wage growth.
Welfare and social protections remain minimal.
Worker bargaining power is restricted.
Result:
Industrial labor costs are structurally suppressed.
(3) Scale and Coordination
Centralized resource allocation.
Economies of scale reduce marginal costs further.