Don't Waste America's Best Chance to Beat China
Nobody is better at research and innovation than the U.S., but it could lose its lead if attacks continue against immigration and universities.
University research helps give the U.S. an edge over China
Photographer: Karen Ducey/Getty Images
Making the U.S. more competitive with China is a big talking point for President Joe Biden as he promotes his economic agenda. After watching China seemingly go from strength to strength for two decades, it's natural to wonder in which industries we might actually have a chance at winning. The answer is: More than you might think, as long as the U.S. adopts a smart strategy and takes care to maintain its core advantages.
In the 2000s, large segments of U.S. industry packed up and went overseas, drawn by the unbeatable “China price.” China’s low-cost advantages included not just labor, but subsidized capital, cheap land, cheap coal power and lax environmental regulations. Now, in the 2020s, the competitive landscape is much different. Decades of rapidly rising wages, limits on coal supplies, and efforts to clean up air and water have forced up Chinese costs until China is no longer automatically the cheaper place to manufacture things anymore. Mexico or Vietnam are more likely to get the factories of manufacturers who care chiefly about cost.