{"id":7766,"date":"2021-05-20T06:30:35","date_gmt":"2021-05-20T06:30:35","guid":{"rendered":"https:\/\/focus.cbbc.org\/?p=7766"},"modified":"2021-05-19T14:34:50","modified_gmt":"2021-05-19T14:34:50","slug":"bidens-manufacturing-plan","status":"publish","type":"post","link":"https:\/\/focus.cbbc.org\/bidens-manufacturing-plan\/","title":{"rendered":"What China\u2019s experience tells us about Biden\u2019s manufacturing plan"},"content":{"rendered":"

The Biden administration wants to revitalise the US manufacturing sector to compete with China. However, facing stiff competition from Europe and East Asia, is likely to face the same problems China has if it wants to establish a self-sufficient domestic manufacturing industry. Read the full analysis below.<\/span><\/h2>\n

Since former US President Donald Trump launched his trade war with China, competition with Beijing has become an obsession in US politics. His successor, Joe Biden<\/a>, now appears to be intensifying efforts to prevent China from overtaking the US as the world\u2019s largest economy. Thus, Biden warned US Senators in February \u2013 after his first call with Xi Jinping \u2013 that China would \u2018eat our lunch\u2019 if the US did not increase its own spending on infrastructure and other domestic industries.<\/span><\/p>\n

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One area that will benefit from the US government\u2019s largesse is the manufacturing sector. Spurred by concerns over supply chain<\/a> dependence on China, the Biden administration<\/a> wants to massively increase investment in domestic production. The planned US$2 trillion (approx \u00a31.4 trillion) infrastructure bill includes several provisions to support domestic manufacturers as well as SMEs. <\/span><\/p>\n

Perhaps surprisingly, the rivalry with Beijing appears to have led the White House to embrace policies that resemble China\u2019s directed industrial policy far more than the classic liberal, market-driven development the US has championed since the 1980s. <\/span><\/p>\n

But rather than becoming a \u2018planned economy\u2019 as some critics fear, it is more likely that the Biden administration\u2019s attempts at import-substitution will run into the same roadblocks as China\u2019s ambitious Made in China 2025<\/a> strategy.<\/span><\/p>\n