Highlights

• China claims 30% of global manufacturing output, surpassing G7 nations and positioning itself as a strategic industrial nucleus.
• The article celebrates China's strengths in:
  • Electric vehicles
  • Solar panels
  • Rare earth elements
  • High-speed rail
• The article downplays potential industrial challenges.
• Despite significant manufacturing achievements, China's state-managed economic model faces long-term sustainability questions in a global market driven by innovation and transparency.

In a sweeping and celebratory editorial (opens in a new tab), China Daily touts Beijing’s industrial triumphs—from electric vehicles and solar panels to rare earth elements and high-speed rail—as evidence that China is not just the “world’s factory” but the planet’s strategic industrial nucleus. The article claims China now accounts for 30% of global manufacturing output, eclipsing the combined share of G7 nations, and portrays the country as a fast-closing challenger to U.S. dominance in virtually every industrial sector—except a few holdouts like semiconductors, aerospace engines, and advanced medical equipment.

What’s emphasized: scale, integration, and control. China dominates in upstream raw materials—especially rare earth elements and certain critical minerals, which the article says anchor its industrial “security.” These inputs feed its downstream command over supply chains in EVs, consumer electronics, and increasingly, military hardware. From Hebei’s billion-ton steel output to Guangdong’s 7 million civilian drones, the narrative is one of unstoppable momentum.

But what’s not said is just as important.

There is no mention of environmental degradation, forced labor concerns (at least in some edge cases), intellectual property theft, or industrial overcapacity that’s fueling global trade tension. Nor is there acknowledgment that China’s dominance in rare earths is a geopolitical choke point, not a triumph of market liberalism.

The piece also omits the growing concern among multinationals about regulatory unpredictability and the risk of sudden state intervention or export bans.

What’s also missing? Any recognition of the U.S. competitive edge. America’s deeper capital markets, stronger venture ecosystems, more transparent regulatory environment, and enduring lead in semiconductors, aerospace, biotech, and advanced computing remain unmatched. Although to China’s credit it’s catching up in key areas of biotech, AI, etc.

U.S. firms also benefit from globally trusted IP enforcement, world-class research universities, and a multi-ally trading bloc looking to build “ex-China” critical mineral and high-tech supply chains. On the other hand the China Belt and Road Initiative should not be underestimated in terms of global impact.

Yes, China is a manufacturing behemoth—but it’s also operating in a state-managed economic silo increasingly at odds with the global trading system in many respects, despite the government seeking to foster “free trade” around the world. Its advantages are real, but they rest on central planning, subsidies, and surveillance—a model with sharp limits in markets driven by trust, innovation, and legal predictability. Over the long run, the sustainability of such a model is questionable.  In the short to intermediate run, to compete with China, Rare Earth Exchanges (REEx) educates the West that industrial policy must be embraced.

But _China Daily_’s message is clear: admire, study, and emulate China. And the subtext for Western policymakers should be sharper: don’t sleep on China—but don’t romanticize it either. The race isn’t over. And with the right strategy, the U.S. and its allies emerge in a better place from an industrial perspective. And even better, with further market reform in China and positive win-win relations, the world wins.