They do not reign over conquered territory, independent of the market and his customers. China and similar nations, where the government was highly bureaucratic and absolutist, experienced stagnation and limited economic innovation. Inventions had to appeal to the central authorities, or else inventors could not continue their work. Chinese society was usually stable, but static not dynamic. In open societies with market economies, living standards for the general public in Europe, and later in North America, advanced rapidly after the industrial revolution began.
Less government controls leads to more human flourishing.