{"id":254235,"date":"2024-02-12T12:00:43","date_gmt":"2024-02-12T12:00:43","guid":{"rendered":"https:\/\/www.transcend.org\/tms\/?p=254235"},"modified":"2024-02-09T04:30:36","modified_gmt":"2024-02-09T04:30:36","slug":"china-is-worlds-sole-manufacturing-superpower-with-35-of-global-output","status":"publish","type":"post","link":"https:\/\/www.transcend.org\/tms\/2024\/02\/china-is-worlds-sole-manufacturing-superpower-with-35-of-global-output\/","title":{"rendered":"China Is \u2018World\u2019s Sole Manufacturing Superpower\u2019 with 35% of Global Output"},"content":{"rendered":"<blockquote><p><em>China\u2019s state-led economic development model and robust industrial policy has transformed it into what an influential European think tank calls \u201cthe world\u2019s sole manufacturing superpower\u201d, making up 35% of global gross production \u2013 more than the 9 next largest manufacturers combined.<\/em><\/p><\/blockquote>\n<p><em>31 Jan 2024<\/em> &#8211; China has overseen world-historic economic growth through a government-led development model, in which <a target=\"_blank\" href=\"https:\/\/www.piie.com\/research\/piie-charts\/state-run-firms-still-dominate-revenue-among-top-firms-china-private-sector\" >state-owned enterprises<\/a> control the natural monopolies and \u201ccommanding heights\u201d of the economy, state-owned banks give favorable loans to strategic industries, and the state\u2019s robust <a target=\"_blank\" href=\"https:\/\/english.www.gov.cn\/2016special\/madeinchina2025\/\" >industrial policy<\/a> helps the country move up the value chain toward higher value-added forms of production.<\/p>\n<p><iframe loading=\"lazy\" title=\"China is now the &#039;world&#039;s sole manufacturing superpower&#039;. How did it develop so fast?\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/WnDWr2YLBgI?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p>This model, which Beijing officially refers to as a socialist market economy, has been so successful that a prominent European think tank has acknowledged that \u201cChina is now the world\u2019s sole manufacturing superpower\u201d.<\/p>\n<p>In 2020, China made up a staggering 35% of global gross manufacturing production. That is more than the combined output of the United States (12%), Japan (6%), Germany (4%), India (3%), South Korea (3%), Italy (2%), France (2%), and the United Kingdom.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-11833\" src=\"https:\/\/i0.wp.com\/geopoliticaleconomy.com\/wp-content\/uploads\/2024\/01\/manufacturing-gross-production-china-world.png?resize=880%2C501&amp;ssl=1\" sizes=\"auto, (max-width: 880px) 100vw, 880px\" srcset=\"https:\/\/i0.wp.com\/geopoliticaleconomy.com\/wp-content\/uploads\/2024\/01\/manufacturing-gross-production-china-world.png?w=1492&amp;ssl=1 1492w, https:\/\/i0.wp.com\/geopoliticaleconomy.com\/wp-content\/uploads\/2024\/01\/manufacturing-gross-production-china-world.png?resize=300%2C171&amp;ssl=1 300w, https:\/\/i0.wp.com\/geopoliticaleconomy.com\/wp-content\/uploads\/2024\/01\/manufacturing-gross-production-china-world.png?resize=1024%2C583&amp;ssl=1 1024w, https:\/\/i0.wp.com\/geopoliticaleconomy.com\/wp-content\/uploads\/2024\/01\/manufacturing-gross-production-china-world.png?resize=768%2C437&amp;ssl=1 768w\" alt=\"manufacturing gross production china world\" width=\"880\" height=\"501\" data-recalc-dims=\"1\" \/><\/p>\n<p>This is according to the research of <a target=\"_blank\" href=\"https:\/\/cepr.org\/about\/people\/richard-baldwin\" >Richard Baldwin<\/a>, a professor of international economics at the IMD Business School in Lausanne, Switzerland, and the editor-in-chief of VoxEU, a publication hosted by the Europe-based Centre for Economic Policy Research, or CEPR (not to be confused with the Washington-based Center for Economic and Policy Research, which uses the same acronym).<\/p>\n<p>CEPR is very influential in European policy-making circles, and receives <a target=\"_blank\" href=\"https:\/\/cepr.org\/about\/join-cepr\" >funding<\/a> from France\u2019s central bank and Finance Ministry, as well as the European Central Bank, International Monetary Fund, and numerous private banks in Europe.<\/p>\n<p>The think tank represents the political mainstream in the EU, and is by no means a \u201cpro-Chinese\u201d institution.<\/p>\n<p>In a January VoxEU research paper titled \u201c<a target=\"_blank\" href=\"https:\/\/cepr.org\/voxeu\/columns\/china-worlds-sole-manufacturing-superpower-line-sketch-rise\" >China is the world\u2019s sole manufacturing superpower<\/a>\u201c, Baldwin wrote (emphasis added):<\/p>\n<blockquote><p>The US is the world\u2019s sole military superpower. It spends more on its military than the ten next highest spending countries combined. <strong>China is now the world\u2019s sole manufacturing superpower. Its production exceeds that of the nine next largest manufacturers combined.<\/strong><\/p><\/blockquote>\n<p>Baldwin explained that, even when output is measured at value added (that is, gross production minus the cost of intermediate goods bought to produce those manufactures), China makes up 29% of global manufacturing, compared to just 16% for the United States, 7% for Japan, 5% for Germany, 3% for South Korea, 3% for India, 2% for Italy, 2% for France, and 2% for Great Britain.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-11907\" src=\"https:\/\/i0.wp.com\/geopoliticaleconomy.com\/wp-content\/uploads\/2024\/01\/china-manufacturing-production-world-35-percent.png?resize=880%2C496&amp;ssl=1\" sizes=\"auto, (max-width: 880px) 100vw, 880px\" srcset=\"https:\/\/i0.wp.com\/geopoliticaleconomy.com\/wp-content\/uploads\/2024\/01\/china-manufacturing-production-world-35-percent.png?w=1492&amp;ssl=1 1492w, https:\/\/i0.wp.com\/geopoliticaleconomy.com\/wp-content\/uploads\/2024\/01\/china-manufacturing-production-world-35-percent.png?resize=300%2C169&amp;ssl=1 300w, https:\/\/i0.wp.com\/geopoliticaleconomy.com\/wp-content\/uploads\/2024\/01\/china-manufacturing-production-world-35-percent.png?resize=1024%2C576&amp;ssl=1 1024w, https:\/\/i0.wp.com\/geopoliticaleconomy.com\/wp-content\/uploads\/2024\/01\/china-manufacturing-production-world-35-percent.png?resize=768%2C433&amp;ssl=1 768w, https:\/\/i0.wp.com\/geopoliticaleconomy.com\/wp-content\/uploads\/2024\/01\/china-manufacturing-production-world-35-percent.png?resize=600%2C337&amp;ssl=1 600w\" alt=\"china manufacturing production world 35 percent\" width=\"880\" height=\"496\" data-recalc-dims=\"1\" \/><\/p>\n<p>Baldwin wrote (emphasis added):<\/p>\n<blockquote><p><strong>China\u2019s industrialisation is unprecedented<\/strong>. The last time the \u2018king of the manufacturing hill\u2019 got knocked off the throne was when the US surpassed the UK just before WW1. It took the US the better part of a century to rise to the top; the China-US switch took about 15 or 20 years. <strong>China\u2019s industrialisation, in short, defies comparison.<\/strong><\/p><\/blockquote>\n<p>He added that this \u201cremarkable fact helps us to understand current US-China trade tensions\u201d.<\/p>\n<p><a target=\"_blank\" href=\"https:\/\/www.youtube.com\/watch?v=WnDWr2YLBgI\" >China\u2019s rapid industrialization through a state-led development model<\/a> has coincided with the United States\u2019 relative de-industrialization through a neoliberal economic model based on privatization, liberalization, deregulation, financialization, and unproductive speculation.<\/p>\n<p>Seeking to <a target=\"_blank\" href=\"https:\/\/geopoliticaleconomy.com\/2022\/05\/28\/cold-war-blinken-china-containment\/\" >halt China\u2019s rise<\/a>, the US government has levied many rounds of unilateral sanctions and <a target=\"_blank\" href=\"https:\/\/geopoliticaleconomy.com\/2022\/10\/24\/us-economic-tech-war-china\/\" >waged what Washington insiders have referred to as a \u201ctechnology war\u201d against China<\/a>, imposing export restrictions in cutting-edge sectors like 5G, semiconductors, quantum computing, and artificial intelligence.<\/p>\n<p>Western governments have pledged to \u201cdecouple\u201d from the Chinese economy and \u201cderisk\u201d strategically important industries.<\/p>\n<p>However, in his CEPR research paper, Baldwin emphasized that the US is much more dependent on buying Chinese manufactured goods than China is dependent on the US market to sell its exports.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-11910\" src=\"https:\/\/i0.wp.com\/geopoliticaleconomy.com\/wp-content\/uploads\/2024\/01\/US-China-economic-trade-dependency-manufacture-market.png?resize=880%2C496&amp;ssl=1\" sizes=\"auto, (max-width: 880px) 100vw, 880px\" srcset=\"https:\/\/i0.wp.com\/geopoliticaleconomy.com\/wp-content\/uploads\/2024\/01\/US-China-economic-trade-dependency-manufacture-market.png?w=1492&amp;ssl=1 1492w, https:\/\/i0.wp.com\/geopoliticaleconomy.com\/wp-content\/uploads\/2024\/01\/US-China-economic-trade-dependency-manufacture-market.png?resize=300%2C169&amp;ssl=1 300w, https:\/\/i0.wp.com\/geopoliticaleconomy.com\/wp-content\/uploads\/2024\/01\/US-China-economic-trade-dependency-manufacture-market.png?resize=1024%2C576&amp;ssl=1 1024w, https:\/\/i0.wp.com\/geopoliticaleconomy.com\/wp-content\/uploads\/2024\/01\/US-China-economic-trade-dependency-manufacture-market.png?resize=768%2C433&amp;ssl=1 768w, https:\/\/i0.wp.com\/geopoliticaleconomy.com\/wp-content\/uploads\/2024\/01\/US-China-economic-trade-dependency-manufacture-market.png?resize=600%2C337&amp;ssl=1 600w\" alt=\"US China economic trade dependency manufacture market\" width=\"880\" height=\"496\" data-recalc-dims=\"1\" \/><\/p>\n<p>\u201cIn 2020, the US was about three times more exposed to Chinese manufacturing production than vice versa\u201d, Baldwin wrote. He added that \u201cthe numbers are astounding\u201d.<\/p>\n<p>Baldwin cautioned, \u201cPoliticians may wish to decouple their economies from China. These data suggest that decoupling would be difficult, slow, expensive, and disruptive \u2013 especially to G7 manufacturers\u201d.<\/p>\n<p>_____________________________________<\/p>\n<p style=\"padding-left: 40px;\"><em><a href=\"https:\/\/www.transcend.org\/tms\/wp-content\/uploads\/2017\/12\/Ben-Norton-e1512138863110.jpeg\" ><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-full wp-image-102810\" src=\"https:\/\/www.transcend.org\/tms\/wp-content\/uploads\/2017\/12\/Ben-Norton-e1512138863110.jpeg\" alt=\"\" width=\"100\" height=\"100\" \/><\/a>Benjamin Norton is an investigative journalist, analyst, writer and filmmaker. He is the founder and editor of <\/em>Multipolarista<em> and is based in Latin America. <\/em><em>His website: <\/em><a target=\"_blank\" href=\"http:\/\/BenNorton.com\/\" ><em>BenNorton.com<\/em><\/a><em>\u00a0 <\/em><em>(<\/em><em>Publicaciones<\/em> <a target=\"_blank\" href=\"https:\/\/geopoliticaeconomica.com\/author\/benjamin-norton\/\" ><em>en espa\u00f1ol aqu\u00ed<\/em><\/a><em>.)<\/em><\/p>\n<p>&nbsp;<\/p>\n<p><a target=\"_blank\" href=\"https:\/\/geopoliticaleconomy.com\/2024\/01\/31\/china-world-manufacturing-superpower-production\/\" >Go to Original \u2013 geopoliticaleconomy.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>China\u2019s state-led economic development model and robust industrial policy has transformed it into what an influential European think tank calls \u201cthe world\u2019s sole manufacturing superpower\u201d, making up 35% of global gross production \u2013 more than the 9 next largest manufacturers combined.<\/p>\n","protected":false},"author":4,"featured_media":102810,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[180],"tags":[244,354],"class_list":["post-254235","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-brics","tag-china","tag-economics"],"_links":{"self":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts\/254235","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/comments?post=254235"}],"version-history":[{"count":2,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts\/254235\/revisions"}],"predecessor-version":[{"id":254238,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts\/254235\/revisions\/254238"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/media\/102810"}],"wp:attachment":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/media?parent=254235"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/categories?post=254235"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/tags?post=254235"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}