China is a Manufacturing SuperPower – Biden Made It Much Worse
China’s dominance in global manufacturing has become one of the most pressing economic challenges of the 21st century. Over the past two decades, the country has transformed itself from a secondary player into an industrial superpower, reshaping global supply chains and destabilizing competitors in the United States and Europe. During President Biden’s administration, this trend accelerated, raising concerns about the future of American manufacturing and the broader global economy. The question is not just how China achieved this dominance but how the U.S. allowed it to deepen during a critical period.
China’s manufacturing boom has propelled it into a unique position. By 2023, China’s manufacturing value-added reached $4.66 trillion, accounting for 29% of global output. As one expert noted, “China’s production exceeds that of the nine next largest manufacturers combined.” This staggering growth has allowed China to undercut competitors with low prices, leaving domestic industries in countries like the United States struggling to survive.
China’s Path to Manufacturing Dominance
China’s ascent to manufacturing supremacy was not accidental. It was the result of deliberate policies and structural advantages that the country used to its full potential. Key factors include its vast supply of low-cost labor, economies of scale, and significant government support. A historical turning point was China’s accession to the World Trade Organization (WTO) in 2001, which granted it access to favorable trade agreements and opened the door to an influx of foreign investment.
According to data from the OECD, China’s share of global manufacturing output surged from just 6% in 2000 to nearly 30% by 2023. This shift happened rapidly. “China passed Germany in 1998, Japan in 2005, and the U.S. in 2008,” writes Professor Richard Baldwin, who has studied China’s industrial rise extensively. “Since then, China has more than doubled its world share while the U.S.’s share has fallen by another three percentage points.”
China’s manufacturing capabilities evolved from producing low-value goods like textiles to dominating high-value sectors like electronics and renewable energy technologies. In 1995, textiles accounted for 20% of China’s total exports, while electronics were less than 9%. By 2020, the reverse was true, with electronics comprising 24% of exports and textiles only 10%. This transformation, often referred to as “climbing the value chain,” required significant investment in infrastructure and technology.
Manufacturing Gains During the Biden Years
While China’s rise to manufacturing dominance began decades ago, the Biden administration saw this trend deepen. Despite promises to prioritize American manufacturing, Biden’s policies largely failed to counter China’s advancements. Though tariffs imposed during the Trump administration remained in place, they were not expanded in a meaningful way. Instead, Chinese manufacturers adapted by finding new markets, subsidizing factories, and even shifting production to other countries to evade trade restrictions.
Under Biden’s leadership, the U.S. failed to match China’s strategic investments in industrial policy. China’s “Made in China 2025” initiative aims to dominate ten key sectors, including robotics, aerospace, and biopharmaceuticals, with massive government support. By 2019, China was spending the equivalent of over 1.7% of its GDP on industrial policy—more than four times the U.S. level at that time. This disparity highlights the lack of urgency in U.S. policy.
During this period, China’s trade surplus ballooned to an unprecedented $1 trillion in 2024, triple what it was in 2018. The gap between U.S. imports and exports with China widened, leaving the U.S. increasingly dependent on Chinese goods. As Baldwin observed, “China is now the world’s sole manufacturing superpower… and the asymmetric impact that its dominance has had on global supply chains is undeniable.”
What China Excels At—and Where It Falls Short
China’s manufacturing strength lies in its ability to produce a wide range of goods, often at prices that competitors cannot match. Electronics, machinery, textiles, and consumer goods are among its top exports. Recently, China has surged ahead in strategic sectors like electric vehicles (EVs) and lithium-ion batteries. By leveraging innovation and affordability, Chinese EV manufacturers have captured significant global market share, even outpacing traditional automotive giants in some regions.
However, China still lags in certain high-tech areas, particularly semiconductors and aircraft. Despite decades of investment, China remains heavily reliant on foreign chip manufacturing equipment and expertise. “China’s semiconductor industry continues to import critical manufacturing equipment,” noted one report, “leaving it exposed to U.S.-led export controls.” Similarly, while China has made strides with its domestically developed COMAC C919 aircraft, it still relies on imported components, keeping it dependent on U.S. and European manufacturers like Boeing and Airbus.
The Danger of Overdependence
The global reliance on Chinese manufacturing presents a significant geopolitical risk. For decades, developed countries like the United States have prioritized cheap goods over the security of their domestic industries. This overdependence on China became starkly evident during the COVID-19 pandemic, when supply chain disruptions caused widespread shortages.
The asymmetry in supply chain reliance is striking. “The U.S. relies far more on Chinese manufacturing production than vice versa,” Baldwin observed. This imbalance gives China leverage over critical industries and raises the stakes for potential trade disputes or geopolitical tensions. Furthermore, China’s practice of flooding global markets with subsidized goods creates distortions that undermine fair competition.
The Way Forward for the United States
The United States must take decisive action to counter China’s manufacturing dominance. First, it needs to invest heavily in its own industrial base, particularly in high-tech sectors like semiconductors and renewable energy. Federal funding, tax incentives, and infrastructure improvements are critical to supporting American manufacturers.
Second, the U.S. should work closely with allies to reduce reliance on Chinese supply chains. By building resilient networks with Europe, Japan, and other partners, the U.S. can create alternative sources for critical goods. Trade policies should also be targeted to protect vulnerable industries from unfair competition.
Lastly, fostering innovation is key. The U.S. must prioritize research and development to remain competitive in emerging technologies. China’s rapid advancements in R&D, especially in manufacturing-related fields, are closing the gap with the U.S., making it essential to double down on innovation.
China’s manufacturing dominance represents one of the greatest economic and geopolitical challenges of our time. During the Biden years, the U.S. failed to mount an effective response, allowing China to solidify its position as the world’s leading industrial power. Without bold action, the United States risks falling further behind, with dire consequences for its economy and global influence.
I think we should pay the same as China and see how many take those manufacturing jobs.
There is a reason that low-cost labor countries move to manufacturing.
Personally, I suggest you fear what comes next as they move out of simple manufacturing and into EVs, AI, and more,
IF they disappeared overnight, there would always be another China, and it will never by the US. Grow up, we need to grow out of this stupid concept that idiots on a line will save our economy. Owning the product will. Making it, not so much. We need to be creators, innovators, not line workers. Leave that to cafeteria workers, and pay them more too.
There is already several new China’s: India, Vietnam, Malaysia. But the whole reason for this is American thinking and greed. Stock holders want more profits. People want to get ahead and build nest eggs so they can live with dignity so they want lower cost items. People want more nice things. And those pesky poor people want to eat. tOh when will they learn!!!???
Tom, economically, the industrial age is over for us, over for India, peaking in China, and ramping up in Malaysia and Vietnam. The hallmarks are countries that make stuff others design. The peaking begins when they start designing themselves, new stuff, not copies. And after —- more diverse, service-oriented economies like EU, Japan and SK, and NA. Post industrial age countries are notable for higher wages, high education levels, and more service-oriented companies. That’s where you will also find immigrants willing to work at the bottom for a taste of the future. Kind of like what we said in richy rich Montgomery County MD in the 70’s: a place where they even through good scraps to hippies :>) Yes, these other countries are starting up, as China begins to enter it’s next phase.
My sarcastic point is there is no going back for any of us. Factories are not coming back in America, at least not in the Henry Ford mode; our labor costs are too high. One reason your death star could still manufacture some stuff was automation. They replaced man with machine, added component insertion machines, robotic delivery systems, basically continued making what they could highly automate. When I started in the mid 80’s, Denver was 90% factory; by the 90’s, it was like 25% but making more shit than ever. Man, I loved watching the insertion machines spit out through-hole components at gatling gun speeds as new components were delivered by robot and just one human needed to feed multiple machines. We turned the factory into labs and shut down some lab buildings which we owned, amortized 100%, so time to profit. Like the industrial economy, it was the circle of manufacturing life that continues today.
I expect US factories of the future will focus on new stuff, complicated stuff, stuff we need to get the process from invention to steady state. And when steady state, find a cheapest place to move it to that can deliver quality.
Our citizens have followed a similar path which is why the factory worker, who used to be Democrats, are disgruntled and feeling left behind, while more Democrats did not follow their father’s footsteps and instead, went to school, are the managerial/professional class that makes more money but forgot about their factory brothers as they moved up the economic ladder. Apparently, big mistake. But again, no going back and we need to make all classes, all professions, feel they are equal partners in the American dream. But the factory will not be a major part of that and we need to address the fallout from it. Frankly, Biden’s Union stand is nice, but just a finger in the dam and ultimately will not plug the leak. Trump, well he’s just lost and trying to go back in time. It never works and ultimately, I expect he will dissatisfy all hitting the tipping point in some crisis he fails us on. Like Covid.
But as the strongest economy out there, no matter how Don calls it, we need to continue that part which is not based on the factory, but on creativity, innovation, and invention (CII) Everything needs to change to promote that. Rote learning does not teach CII. 12 years of school is not enough for strong CII. blah de blah, but everything. Meanwhile, we need to make the economy work for the service and professional/technical segments. These jobs must be able to deliver the American dream too. And today, they do not. When we must augment service worker pay with food stamps and welfare just to keep the price of a hamburger down, that’s not a working economy. Same with the guys who fix our cars, etc.; the higher tech professional/technical jobs requiring a few years of advanced technical training (AA-level or better) should return a healthy salary for a “better than archie bunker” life for the workers, and who knows how high for the owners/managers. We can’t continue to leave these folks behind if we want to move forward.
These concepts should not be political; they are economic and we need to face them if we want to continue to be the best. Going back to factory world will never get us there.
And yes, Virginia Horist, that was a screed :>)
The article says, “The Way Forward for the United States
The United States must take decisive action to counter China’s manufacturing dominance. First, it needs to invest heavily in its own industrial base, particularly in high-tech sectors like semiconductors and renewable energy. Federal funding, tax incentives, and infrastructure improvements are critical to supporting American manufacturers.”
HERE IS THE RECORD RELEVANT TO THIS ARTICLE:
Chips And Science Act (Trump wants to cancel) passed 243 to 187 nay’s. All but 24 nays were GOP.
Infrastructure Act (Many GOP voted against, Dems 215 yea’s, GOPs 13 Yea’s, Dem nay’s 6, GOP Nay’s 200)
Build Back Better Act – passed by 220 yea’s and 213 nay’s, 220 Yea’s were Dem votes. 212 Nay votes were GOP.
IT SEEMS TO ME THAT THE GOP HAS BEEN AGAINST THE USA RECAPTURING ITS MANUFACTURING SUPER STATUS !!!
Tom, interesting how that was left out of the article. Also left out was that the Biden administration created 760,000 jobs. Although the article cites creating manufacturing jobs as policy, it left out that fact. In fact, it blamed Biden for a loss of manufacturing jobs. Fair and balanced?
For once Frank, you and Tom have actually said something I will partially agree with.
But the problem started years ago when Industrialized WORK jobs were removed from schools.
I believe it was some Ass Hole Republican President who thought everyone in this country
should be Engineers and Math experts as they still brought vastly uneducated people into this country.
30 years later all we have to show for it is a civilization were people for the most part think
certain jobs are beneath them.
You are both wrong if you think people will not do the job at some point.
Technology jobs have to return to this country and at that point people WILL do the jobs
like it or not.
Since when do most of Americans get a choice on how they make a living.
At this juncture people will shovel Horse Crap if it pays $80 an hour!
The return of Industry to America is what Trump is pushing for, but you have to start the process before the
jobs can be filled.
Eventually as prices change so will the job pay, greedy stock holders or not. $20 per hour for fast food is
not the answer and never will be.
I have seen this cycle before and it can get better.
This is why Maga said vote for Biden and make China Great Again!
And it worked!
Biden, Trump, Obama China’s economic growth is not within POTUS’ sphere of control. Like the idea of tariffs undermining China or punishing China Mexico, Canada and Columbia it loony tunes management strategy got the economy. When you follow the money it leads right to the end-user consumer who gets left with the bill not the other entities in the channel.
This another attempt to hang something on Biden that would have happened no matter who is POTUS at the time.
Trump talks big but can’t deliver on his promises. It weeks after the election he won, but he acts like he hasn’t stopped campaigning.
He wants what he wants and demands it happens now. He won’t win the tech battles with China. If he thinks there’s on EO for controlling China and his speeches carry any water in the world then he is not thinking rationally.
Sadly, Trump is surely going to let down his supporters and his Party with his frenetic touring and nonsensical speeches.
The jobs Biden claims to have created were simply the jobs closed by the Covid pandemic that were reopened afterwards.
You need to learn what was the North America Free Trade Agreement. It was the base to create a common market of America.
It failed because Mexico failed to offer the low corporate tax rate China did among other issues more.