Market competition determined by technology, quality, not geopolitics
Ding Gang
Washington seems to be on a stimulant called “contain China.” This stimulant has put the US government in a state of excitement, constantly rolling out restrictive policies against China. It has given Washington a temporary illusion of power, making it believe it can curb China’s advancement in the global market.
While the US government can dictate which Chinese-made products Americans may use, such as electric vehicles or textiles made from Xinjiang cotton, it cannot halt the global advancement of Chinese manufacturing or determine its fate.
Fundamental economic principles and Chinese people’s pursuit of a better life and contribution to the world’s common development determine this reality. I have witnessed the pivotal role of Chinese manufacturing in global supply chains. From large-scale infrastructure projects in Africa to high-tech products in Europe, Chinese-made goods are ubiquitous, acting as an invisible yet resilient thread weaving through the global economy net. Even in the US, Chinese-manufactured products are deeply embedded in various aspects of the economy, from everyday items on supermarket shelves to electronic devices and components. In Africa, I have observed how Chinese-backed investment and construction projects have stimulated local economies, catalyzing development aspirations among the populace. In Southeast and Central Asia, Chinese investments have become an important driver of economic growth, fostering regional connectivity.
Despite being US allies and maintaining political alignment, even some developed nations find it challenging to sever their deep economic ties with China. The German automotive industry, for instance, is inextricably linked to the Chinese market and accessories supply chain, much like vines entwined around a tree.
If we liken the global economy to an intricate, colorful jigsaw puzzle, Chinese manufacturing is deeply integrated into its fabric. Removing any piece would fragment the entire picture. Attempting to exclude China from global supply chains would not enhance security for the US and its allies. Instead, it could introduce more significant uncertainty and risk, akin to arbitrarily removing a gear from a precision timepiece, potentially causing the entire mechanism to malfunction. Moreover, China is not a passive player in the global economy but a key protagonist.
During my recent visits to Chinese cities like Shenzhen and Shanghai, I witnessed firsthand the remarkable progress of Chinese enterprises in technological innovation. The innovative atmosphere is palpable, reminiscent of vibrant spring growth, full of vitality and potential. Faced with external pressures, China can fully consolidate its position through further market opening and deepening international cooperation.
When one gains a deeper understanding of the Chinese economy, particularly the dedicated workers and enterprises striving for development opportunities, the enduring momentum of Chinese manufacturing becomes clear.
The global expansion of Chinese-made automobiles is inevitable and merely the beginning. The US and other developed countries that have long dominated the global automotive market must confront the reality of China’s emergence as a formidable competitor in this field. While accepting this reality may be challenging and costly, it’s crucial to recognize that Chinese manufacturing is expanding globally through peaceful means. Any competition is based on technology, quality, cost, and price.
Washington may leverage its limited hegemony to sever ties with Chinese manufacturing, but it cannot reconstruct the intricate, globalization-aligned connections.
While intensifying its policies to contain Chinese manufacturing may create pressure on China’s development, from a broader and long-term perspective, the global advancement of Chinese manufacturing is unstoppable.
The writer is a senior editor with People’s Daily, and currently a senior fellow with the Chongyang Institute for Financial Studies at Renmin University of China
