External headwinds have not weakened China’s manufacturing competitiveness. That is because the Chinese economy combines an unusually large manufacturing base, deep supply chains, fast engineering feedback loops, and cutthroat domestic competition to create global powerhouses.
BEIJING—Chinese industry has been operating under distinctly unfavorable external conditions, with trade tensions, the pandemic, geopolitical conflicts, and the reconfiguration of global supply chains all exerting pressure on manufacturing. Yet China’s net goods exports have continued to grow and now exceed $1 trillion, with electric vehicles (EVs), batteries, and machinery expanding their global footprint. Why have external headwinds not weakened China’s manufacturing competitiveness?
BEIJING—Chinese industry has been operating under distinctly unfavorable external conditions, with trade tensions, the pandemic, geopolitical conflicts, and the reconfiguration of global supply chains all exerting pressure on manufacturing. Yet China’s net goods exports have continued to grow and now exceed $1 trillion, with electric vehicles (EVs), batteries, and machinery expanding their global footprint. Why have external headwinds not weakened China’s manufacturing competitiveness?