China's aggressive industrial strategy directly threatens hundreds of billions of dollars in export revenues for developed countries.
Beijing's total dominance in global markets threatens large-scale deindustrialization for the economies of the G7 countries. This is the conclusion reached by the U.S. Chamber of Commerce, according to Bloomberg.
The report's authors state that China's industrial policy "is becoming increasingly systemic and pervasive. Beijing is actively strengthening its control over global value chains through regulatory controls and economic coercion."
Developed economies (primarily the United States and Europe) face the risk of a long-term loss of their manufacturing competitiveness. Experts estimate that traditional pillars of Western industry, such as the automotive, mechanical engineering (equipment manufacturing), and chemical industries, are most at risk from Chinese competitors. "Collectively, if the current pace of Chinese expansion continues, by 2030, up to $650 billion in G7 manufactured exports could be directly displaced by China's aggressive market share takeover," the report states. "This is equivalent to approximately 12% of the total manufacturing exports of the G7 countries (Canada, France, Germany, Italy, Japan, the UK, and the US)."
These figures are a direct result of Beijing's ambitious Made in China 2025 program. This campaign has enabled China to achieve dominant positions in the world's most advanced industries, while simultaneously triggering fierce trade wars with the US and the EU.
Today, China is already the undisputed global leader in key technologies such as solar panel manufacturing, high-speed highway construction, and lithium-ion battery production. Furthermore, the country is rapidly closing the gap with the West in pharmaceuticals and AI development. The US Chamber of Commerce calls on developed countries to stop acting alone and join forces to counter the Chinese industrial threat.
"While many governments have already begun to respond with trade defense measures (tariffs), their own industrial policies, and efforts to mitigate supply chain risks, these responses remain highly fragmented and largely uncoordinated," the report's authors emphasize.
Among the most dire consequences for Western industrialized nations, the report's authors cite "a precipitous decline in investment, the destruction of innovation ecosystems, and the irreversible loss of productive capacity."