China Dominates Global Manufacturing

Brian Hart, Hugh Grant-Chapman, and Leon Li

Source LInk

China’s manufacturing boom has fueled decades of export-oriented economic growth, undercutting foreign competitors and contributing to a growing appetite for tariffs in the United States and Europe.

1. China’s economic rise has been undergirded by its large manufacturing sector and high volumes of manufactured exports. Thanks to abundant, low-cost labor, large economies of scale, and significant state support, Chinese net exports of manufactured goods grew more than 25-fold over the last two decades.
2. In the United States and many other developed economies, consumers have enjoyed cheaper products as a result—but their manufacturers have struggled to compete. The subsequent political backlash has contributed to a growing appetite for tariffs and industrial policies in many advanced economies as they attempt to make their own manufacturing sectors more competitive in global markets.
3. In the face of these mounting geopolitical tensions, Chinese leader Xi Jinping is doubling down, with repeated calls for China to become a “manufacturing power” and dominate global markets for advanced high-tech goods.