Can the US reverse China's dominance of manufacturing?

In an op-ed piece published on the Diplomat's website on Jan 18, Xiaofeng Wang, a foreign affairs reporter currently located in Washington, D.C, highlighted China's pivotal role as the primary supplier of intermediate goods, asserting that this gives China a significant advantage and makes it more resilient than the US amid supply chain diversification.

Wang emphasized that China has maintained its position as the world's largest exporter of intermediate goods for 12 consecutive years, contributing nearly 60 percent to its foreign trade growth. This, in turn, has solidified China's position as the epicenter of global manufacturing.

The author also underscored that China's dominance in the production of intermediate manufactured goods surpasses its dominance in the production of final goods, further solidifying its role as the epicenter of global manufacturing.

Referencing a new research study by Richard Baldwin, a professor of international economics at IMD Business School, Wang revealed the asymmetric supply chain reliance between China and the United States.

The research findings indicated that China is the top supplier of industrial inputs for the United States in all sectors except pharmaceuticals. Notably, the study revealed that US manufacturing's dependence on Chinese supplies is significantly higher than China's dependence on the United States.

Wang concluded by posing a thought-provoking question about the potential for the US to overturn China's dominance, given that China currently accounts for a third of global manufacturing. As China continues to fortify its supremacy, Wang contended that the US' efforts to reverse this trend could prove increasingly challenging.