China had its Sputnik moment — his name was Donald Trump,

 China Has Taken a Great Leap Forward in High Tech Manufacturing

Thomas L. Friedman

NYT I just spent a week in Beijing and Shanghai, meeting with Chinese officials, economists and entrepreneurs, and let me get right to the point: While we were sleeping China took a great leap forward in high-tech manufacturing of everything.

“China had its Sputnik moment — his name was Donald Trump,” Jim McGregor, a business consultant who lived in China for 30 years, told me. “He woke them up to the fact that they needed an all-hands-on-deck effort to take their indigenous scientific, innovative and advanced manufacturing skills to a new level.”

Here’s what Noah Smith, who writes about manufacturing, posted the other day, using data from the United Nations Industrial Development Organization:

In 2000, “the United States and its allies in Asia, Europe and Latin America accounted for the overwhelming majority of global industrial production, with China at just 6 percent even after two decades of rapid growth.” By 2030, Smith wrote, the U.N. agency predicts “China will account for 45 percent of all global manufacturing, single-handedly matching or outmatching the U.S. and all of its allies.

“This is a level of manufacturing dominance by a single country seen only twice before in world history — by the U.K. at the start of the Industrial Revolution, and by the U.S. just after World War II.” Smith wrote, “It means that in an extended war of production, there is no guarantee that the entire world united could defeat China alone.”

Xiaomi’s SU7, which is manufactured in a formerly abandoned plant that used to make gasoline-fueled cars — was the talk of the Beijing car show last April. Meanwhile, BYD, the famed Chinese battery company, which already had a car-making subsidiary, doubled down on automobiles. I rode all over Shanghai in super-comfortable BYD electric cars operated by Didi, China’s Uber. BYD now offers a subcompact E.V., the Seagull, that starts at less than $10,000.

In an effort to export its large inventory of cars, China has begun construction of a fleet of 170 ships capable of carrying several thousand automobiles at a time across the ocean. Before the Covid-19 pandemic, the world’s shipyards were delivering only four such vessels a year. That is also not a typo.

Because China has essentially a national electric grid, it has installed charging stations all over the country, which is why more than half of new car sales in China are of E.V.s. Apple talked for 15 years about making an electric car. Has anyone driven an Apple car?

But don’t worry, folks, help is on the way. Trump has vowed to make America great again by doubling down on drill-baby-drill gas guzzlers and ending U.S. government subsidies for Americans who purchase electric cars.

So, what do you think is going to happen? The rest of the world will gradually transition to Chinese-made self-driving E.V.s, “and America will become the new Cuba — the place where you visit to see old gas-guzzling cars that you drive yourself,” as Keith Bradsher, the Times Beijing bureau chief and an auto industry specialist, mused to me.

If that happens, one day we’ll wake up and China will own the global electric vehicle market. And since fully autonomous driving technology only really works with E.V.s, that means China will own the future — the self-driving-cars market as well.

As an article in the state-run China Daily explained: “From steel plates and mobile phones to household motors and rocket ignition device parts, more business lines in China are using artificial intelligence to power their production and have introduced ‘dark factories’ with their 24-hour uninterrupted and unattended production capabilities. Dark factories, also called smart factories, are entirely run by programmed robots with no need for lighting.”

In the last seven years alone, the number of babies born in China fell from 18 million to nine million. The latest projection is that China’s current population of 1.4 billion will decline by 100 million by 2050 and possibly by 700 million by the end of the century. To preserve its own standard of living and be able to take care of all its old people, with a steadily shrinking working population, China will drive the robotization of everything for itself — and the rest of the world.