Is America Losing the Tech Race to China?

Donald Trump may claim his trade war with China is all about bringing manufacturing jobs back to China, but in reality it may be a counter to the fact that the US is losing the tech race with China...

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China's Manufacturing Muscle: EVs and Consumer Tech

15 Years ago the joke that is Elon Musk joked about Chinese car manufacturer's efforts to make electric cars, now they outperform the beleagured Tesla on almost every metric, including battery life.

Meanwhile, companies like Xiaomi, better known to the West for their smartphones, have entered EV manufacturing with stunning speed. Their assembly lines churn out a car every 76 seconds—a rate of production that surpasses traditional Western automakers Ford and GM.

This turbo-charged innovation is not isolated. China leads other consumer tech domains as well. While much of the UK and even parts of the US hang onto 4G networks, China is implementing 5.5G technology, with speeds of up to ten times 5G. These innovations aren't simply remapping China's economy—they're challenging the West's technological relevance.

AI, Chatbots, and Supply Chain Supremacy

Perhaps the strongest proof of China's rise is its leap in artificial intelligence. China's chatbot, DeepSeek, now rivals ChatGPT in capability but is produced at a tiny fraction of the cost. Why? Because China's control over supply chains allows it to create high-performance systems more efficiently and cheaply.

This is part of a broader trend. China is about far more than just factory manufacturing. For many years now Chinese firms have been accelerating research and development faster than those in the West. All of this is encouraged by government policy and state-led investment.

Semiconductors: America's Last Stronghold?

America does have one hold-out area where it has an advantage: semiconductors. Thanks to the likes of NVIDIA and Intel, but again the Chinese State has poured billions into this sector in recent years.

If semiconductors are the "brains" of emerging technology, then whoever controls chip production will control the future. This maybe explains why the U.S. has moved to deny China access to advanced chips and chip-making machinery...

Final Thoughts

Possibly all of this is one of the downsides of the free-market compared to the State. Possibly free market money ISN'T as good as State Vests for directing research into where it is most needed for national security...?

Posted Using INLEO



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Who knows, perhaps Yuan might be the world's new reserve currency.

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I think it is likely a temporary advantage. The USA has largely benefited from the influx of talent from other countries. In contrast, would non-Chinese talent intentionaly want to move to China? These are not equal propositions.

Furthermore, much of their technological advancement is largely due to their disregard for intellectual property rights. It isn't that the technology doesn't exist in the US. It's just siloed behind patents.

Similar to how the Soviet Union's launch of Sputnik goaded the USA into seriously committing to the space race, I think China's efforts are goosing the nerds here to do better.

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but in reality it may be a counter to the fact that the US is losing the tech race with China...

Ah! but that's only because the US doesn't have such an advanced marketing and advertising billboards as China does. ...said Donald Trump!

https://www.youtube.com/shorts/W3QwiNlsqeY

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Dictatorships and oligarchies, if led by capable people, will always have that advantage over democracies, especially considering the state that most "western" democracies are in. They can just decide what's best to reach the goal that they want to reach. That leads to less bureaucracy and hence faster development.

So, yes, China is overtaking the lead, sooner or later. I'm kind of sure of that :-D

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China is better set up for manufacturing than the US and Europe. We've lost that battle.

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There is no doubt that China has outperformed the world in manufacturing and technology.

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