In recent years, China has increasingly threatened the United States’ economic supremacy, as it moves closer to achieving the goals set out in its famous “Made in China 2025” plan.
In his Washington Post article, US Senator Marco Rubio warns that China is no longer just an ordinary competitor, but has become the most advanced adversary the United States has ever faced.
In 2015, China launched the “Made in China 2025” plan, a strategy that aims to achieve control over 10 vital sectors of the global economy.
According to a report from Senator Rubio’s office, China has now become a world leader in four of these key sectors:
- Dominating the electric car industry: China has become the largest exporter of electric cars and cars in general in the world.
- Solar: China controls 80% of the global solar supply chain, far more than any other country.
- Nuclear energy: China has completed the construction of the world’s first fourth-generation nuclear reactor.
- Railway Industry: China has the world’s largest high-speed railway network, with a length of 45,000 kilometers.
- In addition, China’s shipbuilding industry exceeds the United States’ capacity by more than 200 times, according to a report from the U.S. Office of Naval Intelligence.
This tremendous progress in vital industries puts China in a superior position in global economic competition, according to Rubio.
Great successes in technology
Despite tremendous success in some sectors, China has not achieved all of its goals. In areas such as commercial aviation, China has not yet achieved the desired level, with the Commercial Aircraft Corporation of China still struggling.
But in the drone industry, Chinese companies have achieved great success, as they now control about 70% of the American market..
In the field of biotechnology, Chinese companies still rely heavily on Western capital and technology, despite their remarkable progress in producing new drugs and treatments.
On the other hand, China has failed to achieve its goals in the agricultural sector, as the agricultural trade deficit has increased significantly, posing a major challenge to the ruling Chinese Communist Party’s efforts to achieve economic self-sufficiency.
China should not be underestimated.
In his interview with Time magazine in June 2024, US President Joe Biden indicated that demographic challenges in China could hinder its economic progress, especially with an aging population that makes many in China unable to work.
Biden added that the Chinese economy’s reliance on debt, which exceeds 180% of GDP, could lead to an economic collapse, similar to what happened to the Soviet Union at the end of the Cold War.
But Senator Rubio cautions against underestimating China. While some believe that China could collapse under the weight of its internal contradictions, Rubio points out that China has economic and technological capabilities that far exceed those of the Soviet Union. He adds that even if there is confidence that China will lose its competitiveness in the future, that does not solve the challenge it poses today.
What should the United States do?
According to Rubio, the United States cannot remain idle in the face of the growing Chinese threat, and to meet this challenge the United States needs to adopt a strong industrial policy, including several critical steps:
- Huge investments in vital sectors: The United States must invest in key sectors that impact national security and economic prosperity, including advanced technology industries such as artificial intelligence, renewable energy, and robotics.
- Stimulating local manufacturing: Rubio believes there is an urgent need to remove regulatory restrictions that hinder the growth of manufacturing in the United States, and achieving this goal will help revive American industry and achieve sustainable economic growth.
- Imposing tariffs and trade restrictions: Rubio argues that imposing tariffs and restrictions on technology transfers could help protect the U.S. market from subsidized Chinese products that pose a threat to American companies.
- Combating Espionage and Intellectual Property Theft: There is a need to strengthen protections against Chinese espionage and intellectual property theft, as Chinese companies are believed to be illicitly benefiting from American research and innovation.
American Basics
Rubio stresses that countering China’s strategy does not mean adopting the same methods Beijing uses, such as nationalizing companies or using forced labor.
Instead, Rubio calls for a return to America’s roots of supporting vital industries and encouraging innovation, and he stresses that the United States must respond quickly to these challenges or find itself vulnerable to China’s growing economic power.
In conclusion, Rubio warns that failure to learn from the experience of “Made in China 2025” could lead to China completely overtaking the United States in the coming decades.
For this reason, the United States must take strong and decisive action to maintain its economic competitiveness and avoid collapse against the most advanced adversary it has ever faced.