China’s industrial strategy threatens hundreds of billions of dollars in developed countries’ manufacturing output and could lead to a weakening of their industrial potential, according to a report by the U.S. Chamber of Commerce obtained by Bloomberg.
The report was prepared jointly with the research firm Rhodium Group. The authors of the report say that Beijing’s policies are becoming “more systematic and comprehensive” and that China is tightening its grip on global production chains through regulations and economic pressure.
According to analysts, developed economies face the risk of a long-term decline in industrial competitiveness as China’s industrial policy expands. The report places the biggest risks on the automotive, machinery and chemicals industries. Thus, by 2030, up to $650 billion in G7 industrial exports - approximately 12% of all G7 industrial exports - could be at risk.
As Bloomberg notes, the “Made in China 2025” strategy has allowed Beijing to take a leading position in a number of high-tech industries, including solar panels, high-speed trains and lithium batteries. In addition, China is rapidly closing the gap in pharmaceuticals and artificial intelligence.
Reuters reported that China increased its exports ahead of US President Donald Trump’s visit to Beijing. The main drivers of this growth are the supply of artificial intelligence (AI)-related products, as well as the desire of buyers to stockpile components amid concerns that a war in the Middle East could lead to further price increases.
In the first quarter of 2026, China's GDP grew by 5% year-on-year.