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Global Manufacturing Superpower: Is China Still Number 1 in 2025?

China’s empire has persistently controlled the majority of global production, aptly earning the title of ‘the world’s factory’, which it has held for decades. China leads with unmatched levels of industrial production, low-priced workers, and world-class supply chain systems. However, with the advent of 2025, there are several changing factors including emerging technologies, geopolitical concerns, and other global shifts, these shifts invoke the question of whether China would be able to sustain its hold on the industry. This article analyses the evolution of additional significant players in the production sphere, attempts to identify the key forces impacting Chinese manufacturing dominance, and seeks to answer what the world will look like for global production in the years to come. Will China maintain its supremacy? Is a decentralized world with distributed manufacturing on the brink? Come with us as we investigate China’s race for industrial superiority.

How does China’s manufacturing output compare to other countries?

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How does China's manufacturing output compare to other countries?

With a significant lead above the rest, China holds the title as the largest manufacturing industry in the world, and this is primarily due to its astonishing output in comparison to other remaining countries. As per the records provided by the World Bank, China leads in the manufacturing sector with nearly 28.7% of the manufacturers, trumping the United States astonishing 16.8%. Other powerful country such as Germany and Japan also do hold a share, though small, but it only goes on to prove China’s superiority in this department. Additionally, China’s abundant infrastructure, skilled human resources, and favorable government industrial policies, all provide China with a competitive upper hand.

China’s share of global manufacturing output

With a total estimated global contribution of roughly 28.7%, China remains the world’s leading contributor in manufacturing. This value accentuates China’s leadership in manufacturing, which stems from its immense industrial infrastructure and robust production capabilities.

Top 10 manufacturing countries in the world

A key market player greatly influences output contributions across global manufacturing. Presented below is the data for the ten manufacturing countries along with their contribution to the global output:

China

  • Global Manufacturing Output Share: 28.7%
  • Industries Of Note: Textiles, steel, machinery, automobiles, and electronics.
  • Noteworthy: The Chinese regional manufacturing clusters benefit from well-developed infrastructure, industrial integration, and expeditious customers.

The United States

  • Global Manufacturing Output Share: 16.8%
  • Industries Of Note: Information technology, aerospace, pharmaceuticals, and machinery.
  • Noteworthy: The US has long been synonymous with leading innovations in manufacturing and high-performance production.

Japan

  • Global Manufacturing Output Share: 7.5%
  • Industries Of Note: Robotics, precision machinery, electronics, and automobiles.
  • Noteworthy: Japan continues to maintain its position as a leader in precision manufacturing and high-value products.

Germany

  • Global Manufacturing Output Share: 5.3%
  • Industries Of Note: Electronics, chemicals, machinery, and automobiles.
  • Noteworthy: The rest of the world admires Germany for its strong engineering and industrial capabilities.

India

  • Global Manufacturing Output Share: 3.1%
  • Industries Of Note: Electronics, textiles, automobiles, steel, and pharmaceuticals.
  • Noteworthy: The Indian government program “Make in India” has positioned India as a significant emerging manufacturing economy.

South Korea  

  • Global Manufacturing Output Share: 3.0%
  • Principal Sectors: Electronics, shipyards, automobiles, steel, and semiconductors.
  • Achievements: Innovations and high-level manufacturing mark the South Korean landscape.

Italy

  • Global Manufacturing Output Share: 2.1%
  • Principal Sectors: Fashion, food, machinery, and automobile industry.
  • Achievements: Specialized luxurious and Italy-branded products are well recognized in the world market.

France is actively working to re-energize its manufacturing sector in order to have a competitive edge across the globe. 

  • Global Manufacturing Output Share: 1.9%
  • Principal Sectors: Automobiles, Aéronautique, electronics, and pharmacy.
  • Achievements: France has put together an extensive manufacturing base that is highly proficient in aerospace and automotive manufacturing.

Indonesia

  • Global Manufacturing Output Share: 1.6%
  • Principal Sectors: Textiles, automotive parts, electronics, and palm oil processing.
  • Achievements: The country is emerging as a prominent manufacturer owing to its rich natural resources which greatly help in the industries.

Mexico is one of the new emerging countries attracting dollars and with increased value-added manufacturing, moves towards becoming an important Mexican United States manufacturing block.

  • Global Manufacturing Output Share: 1.5%
  • Principal Sectors: Appliances, electronics, textiles, automobiles.
  • Achievements: The US border accompanies Mexico making the country a major manufacturing site, especially for industries reliant on exports.

These ten countries have maintained their pre-eminence in world manufacturing by constructing their structure on deep division of labor and high specialization in production processes, thus significantly increasing industrial output and economic growth across the globe.

Comparison of manufacturing GDP across nations

It is important to evaluate both the total GDP of a country and the percentage of GDP that comes from manufacturing when looking at manufacturing GDP across countries. Example:

China

  • Global Manufacturing Output Share: Roughly 28.7%
  • Focal Sectors: Electronics, machinery, textiles, and automobiles.
  • Noteworthy Points: China continues to have the highest output above all other countries due to its extensive industrial foundation and considerable spending on infrastructure and technology.

United States

  • Global Manufacturing Output Share: Roughly 16.8%
  • Focal Sectors: Aerospace, Automotive, pharmaceuticals, and electronics.
  • Noteworthy Points: The United States has sophisticated methods of manufacturing to offer and is also dominant in high-technology industries, all of which is made possible by extensive R&D activities, and a highly trained workforce.

Germany

  • Global Manufacturing Output Share: Roughly 5.3%
  • Focal Sectors: Automotive, machinery, chemicals, and precision engineering.
  • Noteworthy Points: Germany leads in engineering-intensive industries and it is supported by innovative technologies and export-oriented markets. They continue to dominate as one of the world’s superpowers.

Japan

  • Global Manufacturing Output Share: Roughly 7.2%
  • Focal Sectors: Automobiles, robotics, electronics, and chemicals.
  • Noteworthy Points: Japan remains supremely known for its high-end manufacturing, especially of automobiles and robots, which is underscored by the detail-oriented and efficient qualities of its industries.

India

  • Global Manufacturing Output Share: Roughly 3.1%
  • Focal Sectors: Textiles, pharmaceuticals, automobiles, and electronics.
  • This segment has explained the IT sector output in India which has shown steady growth in the last few years due to government initiatives such as “Make in India” along with the efforts to enhance domestic capabilities.

South Korea

  • Global Manufacturing Output Share: Approx. 3.0%
  • Key Industries: Electronics, shipbuilding, automobile, steel
  • This segment has described South Korea as an exporter that has one of the highest technological advancements in production industries, especially in semiconductors and electronics.

Italy

  • Global Manufacturing Output Share: Approx. 2.1%
  • Key Industries: Machinery, textiles, fashion, automobile
  • This segment has discussed how Italy is well known for its artisans in various fields and its robust focus in high-end consumer segment items.

Mexico

  • Global Manufacturing Output Share: Approx. 1.5%
  • Key Industries: Automobile, electronics, furniture, textiles
  • This segment has mentioned Mexico’s manufacturing economy’s productivity-driven nature which can mostly be attributed to the United States’ proximity and other free trade zone negotiations.

Russia

  • Global Manufacturing Output Share: Approx. 2.0%
  • Key Industries: Energy equipment, machinery, steel, chemicals
  • This segment has highlighted that Russian productivity in manufacturing is highly driven by natural resources and an energetic economy.

Vietnam

  • Global Manufacturing Output Share: Approx. 1.0%
  • Key Industries: Electronics, clothing, textiles, wooden products.
  • This segment has underlined the fast development of Vietnam as a manufacturing hub due to cheap labor and a high amount of FDI

Observations and Trends

The industrial production of these countries indicates their economic strategies as well as their participation in global value chains. The U.S., Germany, and Japan are focused on high-tech and precision industries. On the other hand, India, Vietnam, and Mexico as emerging economies capitalized on cost competitiveness coupled with growing domestic demand for manufacturing. Looking ahead, there will likely be a greater emphasis on automation, sustainability, and digital transformation throughout the world’s manufacturing sectors.

What factors contribute to China’s manufacturing dominance?

What factors contribute to China's manufacturing dominance?

China’s advanced manufacturing capabilities

Several forces propel China’s advanced manufacturing capabilities. To begin with, the country possesses an all-encompassing industrial supply chain suitable for multi-sector production. Second, notable investments in infrastructure, especially in transportation and logistics, improve the efficiency of manufacturing. Third, there is a broad-skilled and well-trained workforce available for both low and high-technology industries. Furthermore, government initiatives targeting industrialization and modernization have deepened the manufacturing industry. With these combined factors, along with strong export markets and affordable costs, China’s manufacturing supremacy is undisputed.

The role of China’s supply chain ecosystem

China’s extensive network of suppliers, optimized logistics, and holistic infrastructure constitute an integral part of its manufacturing success. This ecosystem facilitates the movement of materials, components, and even finished goods, which decreases overall production costs and delays. Moreover, increased proximity between suppliers and manufacturers enables better collaboration and accelerates innovation, revolutionizing China’s position as a global manufacturing hub in large-scale manufacturing sectors.

Government policies supporting the manufacturing sector

To strengthen its competitive supremacy, the Chinese government has engaged in a multitude of policies aimed at reinforcing the manufacturing industry. One of the most pronounced initiatives is the mingled strategy known as “Made In China 2025” which seeks to modernize the Chinese manufacturing base by automating processes and using AI along with green technologies. This program aims to enhance innovation within robotics, aerospace, renewable energies, and high-technology equipment industries while simultaneously reducing the reliance on foreign Technological products.

Moreover, China pioneered newly supportive financial policies such as subsidies, and tax and grant provisions directed to modify policies and enhance R&D activities undertaken by the manufacturers. For example, the reduction in corporate tax for companies operating in highly technically advanced environmentally-friendly manufacturing processes has increased investments considerably.

On top of that, there is a never-ending government commitment to improving infrastructure by providing funds for the development of transport, energy, and digital infrastructure. The expansion of world trade routes alongside domestic imports of raw materials and exports of manufactured goods as part of the Belt and Road Initiative fundamentally impacts global manufacturing also.

As reported, the ongoing government initiatives have helped maintain the growth in industrial production, with manufacturing making up close to 27% of China’s GDP in 2023. In addition, policies aimed at fostering regional manufacturing agglomerations, especially the Yangtze River Delta and Guangdong-Hong Kong-Macao Greater Bay Area, have improved logistics and supply chain integration.

These policies together manifest China’s intention to sustain its preeminence in global manufacturing through innovation, efficiency, and growth.

Are there any challengers to China’s position as the top manufacturing country?

Are there any challengers to China's position as the top manufacturing country?

The rise of manufacturing in countries like India and Vietnam

The rapid development of the manufacturing industries in India and Vietnam has made them both emerging competitors to China. The advantageous Indian gives it an edge which contains a skilled and plentiful workforce, evolving infrastructure, and developing industrial parks. Electronics, automotive, and textiles are some sectors of manufacturing that the country aims to make competitive via “Make in India” policies which focus on global manufacturers attracting global companies. Vietnam is also known for leveraging low wages, free trade agreements, and closeness to prominent world markets to establish itself as a center for electronics and apparel supply. Both countries are becoming capable of enhancing their industrial growth, proving to be alternatives to China in more than just a few industries.

US efforts to revitalize its manufacturing sector

The U.S has launched several efforts aimed at increasing innovation, improving the workforce ecosystem, and enhancing supply chain resilience in the manufacturing sector. One of the primary initiatives is the CHIPS and Science Act of 2022, which aims to incentivize semiconductor manufacturing and research in the U.S by providing more than $280 billion. One of the main goals of this act is to lessen the U.S.’s dependency on foreign countries for semiconductor production and strengthen infrastructure security.

Moreover, the 2022 Inflation Reduction Act has further tax credits for domestic producers of renewable energy technologies, such as solar panels, batteries, and wind turbines. This act seeks to foster clean energy manufacturing by investing $369 billion towards those initiatives. There are also policies aimed at restoring manufacturing operations back to the U.S, which enable the country to mitigate some vulnerabilities that were exposed during the global supply chain disruptions.

In addition to these acts, the U.S has made direct investments in training the workforce. For example, the Manufacturing USA network, which comprises 16 innovation institutes, works to advance enabling manufacturing technologies and endeavors to foster collaboration among the private sector, academia, and the government. The National Association of Manufacturers estimates that this industry contributes around $2.81 trillion each year to the economy which shows why it is critical for economic development and national security.

The U.S. remains dedicated to strengthening its domestic manufacturing capabilities and preserving leadership in technology by implementing these strategies, all while competing internationally in critical sectors like semiconductor production, clean energy, and advanced manufacturing.

South Korea’s high-tech manufacturing prowess

Rich in innovation, South Korea has continued to maintain dominance in high-tech manufacturing along with its advancement in various socioeconomic sectors within the country. Being the home of the semiconductor, display technology, and consumer electronics industries, South Korea is the birthplace of many industry leaders such as Samsung, LG, and SK Hynix. A report from 2022 suggests that South Korea’s market share in global semiconductor production is somewhere around 20%, and further solidifies South Korea as a crucial player in the tech industry indicating the nation’s share in manufacturing.

In South Korea, the production of OLED display panels has also been greatly successful where South Korean businesses alone account for more than 80 percent of the world’s market for smartphone OLED screens. Furthermore, the success can be attributed to their investment in research and development, with R&D expenditure estimated at almost 4.9% of the nation’s GDP in 2021, making them one of the highest in the world. This transformation puts South Korea in a state of dominating and rapid progression toward new and sophisticated technologies like AI, biotechnology, and robotics.

In addition, there is strong government assistance such as tax benefits and policies like the “K-Semiconductor Strategy” that aid in the development of South Korea’s manufacturing ecosystem. This program seeks to ensure the country’s technological dominance by developing an advanced supply chain and luring more than $450 billion in private spending by 2030. South Korea’s efforts to attract investment through the K-strategies further cement the country’s status as a center for high-tech manufacturing and innovation.

How has China’s manufacturing sector evolved in recent years?

How has China's manufacturing sector evolved in recent years?

Shift towards higher value-added manufacturing

The refinement of China’s manufacturing industry in the last 10 years has been from cheap labor, and low-value production to value-adding industry manufacturing. “Made in China 2025” is one of the national policies that aim to foster advanced manufacturing industries in robotics, aerospace, renewable energy, and biotechnology – and strategies backed by these policies. China is now reporting an increase of over 10% in high-technology manufacturing industries which outpaces other forms of manufacturing.

Moreover, China has also doubled its spending on research and development to over 2.5% of gross domestic product (GDP) which positions it among the leaders of expenditure in innovation. The government is directing spending towards digital transformation, automation of industries, and AI integration in manufacturing. This allows Chinese businesses to join the competitive markets of electric vehicles (EVs), semiconductors, and renewable energy equipment.  Moving from low to high-value-added processing improves the economic strength of China while reducing the dependency on foreign technologies and dealing with geopolitical supply chain issues.

Impact of automation and AI on Chinese manufacturing

Productivity and effectiveness have been greatly improved in the Chinese manufacturing industry due to the use of automation and artificial intelligence (AI). New research found China’s industrial robot density in 2022 was 322 units for every 10,000 workers which places China amongst the world leaders for such figures, even exceeding the number of advanced economies. This growth was largely driven by the push towards “smart manufacturing” with the introduction of Made in China 2025. AI-powered systems are being used for supply chain management, improve quality control through image recognition, and to strengthen maintenance capabilities ahead of time.

In addition, the adoption of AI technology has fostered improvements in precision manufacturing, especially in consumer electronics, medical devices, and automobile production as these industries are at the forefront of AI integration. For instance, machine learning-based algorithms incorporated in semiconductor fabrication processes have allowed Chinese producers to increase both accuracy and yield rates. One analysis from 2023 revealed that AI automation helped reduce production costs by over 20-30 percent for some enterprises alongside reducing time to market for newly innovated products.

Obstacles still exist, such as a lack of skilled AI personnel as well as the difficulty of embedding AI into pre-existing systems. Nonetheless, with sustained funding in research and development, coupled with automation and AI upscale talent training programs, China is set to effortlessly dominate the global innovatory manufacturing market.

China’s focus on becoming a manufacturing superpower by 2026

China’s goal of becoming a global manufacturing superpower by 2026 is rooted in its “Made in China 2025” initiative, which emphasizes innovation, quality enhancement, green development, and digital transformation. A key aspect of this strategy is the focus on high-tech industries, such as robotics, aerospace, biotechnology, and new-generation information technology. By prioritizing these sectors, the nation aims to reduce its reliance on foreign technologies and elevate the global competitiveness of its manufacturing output.

According to recent industry reports, China’s investment in research and development (R&D) reached approximately 3.09 trillion yuan ($424 billion) in 2022, reflecting a year-over-year increase of 10.4%. This persistent growth in R&D expenditure highlights China’s commitment to advancing technological breakthroughs and fostering homegrown innovation. Additionally, the country is heavily investing in smart manufacturing technologies, including the adoption of 5G, artificial intelligence (AI), and the Internet of Things (IoT), which are being seamlessly integrated into production processes to boost operational efficiency and automation.

China’s progress is also evidenced by its dominance in industrial robotics. By 2022, China accounted for 52% of global industrial robot installations, underscoring its ability to scale automation across various manufacturing verticals. Furthermore, government-backed initiatives, such as subsidies and tax incentives for high-tech enterprises, have accelerated advancements in precision engineering and semiconductor manufacturing—a critical step in addressing supply chain vulnerabilities.

This holistic approach not only strengthens China’s domestic manufacturing capabilities but also positions the nation as a leader in sustainable practices. By 2026, China aims to achieve significant reductions in carbon emissions across key industries, aligning its manufacturing growth with international environmental benchmarks.

What are the global implications of China’s manufacturing dominance?

What are the global implications of China's manufacturing dominance?
image source:https://rhg.com/research/how-chinas-overcapacity-holds-back-emerging-economies/

Influence on global supply chains

China’s manufacturing supremacy disrupts global systems intricately. Their unmatched efficiency in producing components and finished products ensures that they are readily available throughout the globe. This dependence does come with weaknesses, though, as China’s disruption to production or logistics can adversely affect the entire world. Thus, our country, like others, is trying to find a way to balance access to essential manufacturing resources with the need to reduce dependency.

Impact on international trade and export patterns

They say that China’s exceptional mastery over manufacturing practices greatly integrates world trade flow. Their active participation in international trade has made them the largest exporters, trading several products from all over the world. This affected some areas economically because China gained way more revenue than the expenditures that were purchased from them. Furthermore, the capability of China to competitively price items has changed China as well as other overseas markets. While the consumers are benefitting, domestic businesses face several struggles. All of this shifts the attention of the globe towards China and its international trade relations.

Geopolitical considerations of China as a manufacturing powerhouse

China’s manufacturing sector power has important geopolitical consequences. Its control over crucial supply chains especially in electronics, pharmaceuticals, and renewable energy provides it with strong bargaining power in economic and political diplomacy. This action has prompted a lot of countries to try to diversify supply chains to mitigate dependency on China to improve economic robustness. Moreover, China’s dominance in manufacturing serves as the basis for the…Some of these reasons emphasize the importance of the dual phenomena of manufacturing and geopolitics concerning China’s ascendancy to superpower status.

How sustainable is China’s position as the world’s manufacturing hub?

How sustainable is China's position as the world's manufacturing hub?
image source:https://www2.deloitte.com/cn/en/pages/energy-and-resources/articles/sustainability-in-the-manufacturing-sector.html

Challenges facing Chinese manufacturing firms

Here are some of the overarching challenges that Chinese manufacturing firms must tackle to retain their global hegemony:

  1. Increasing labor costs – Wages have been rising in China, which decreases the profitability of labor, thus forcing automation, or shifting manufacturing to other nations with lower wage costs.
  2. Geopolitical Tensions and Tariffs – Conflicts like trade wars with the US impose tariffs and barriers to trade which affect supply chains, exports, and overall market entry.
  3. Environmental Policies – Increased operational expenses caused by pollution control as well as higher costs of cleaner production processes lead to more stringent policies.
  4. Realignment of supply chains – Economies aiming at diversified supply chains other than the Chinese manufacturing base lead to reduced investment in the region.
  5. Competitive technology – Chinese manufacturing firms, alongside other manufacturing centers, have to focus on innovation, and therefore investment in research, development, and automation is mandatory.

Environmental concerns and sustainable manufacturing practices

The manufacturing industry is working to solve various environmental issues, concentrating mainly on pollution protection and reducing the carbon footprint. Sustainable manufacturing seeks to mitigate these problems by using energy-efficient technologies, incorporating renewable energy, and reducing waste. Many companies have shifted focus towards more sustainable manufacturing value addition practices such as circular economy frameworks where materials are recycled, and products are manufactured to last longer. Also, governments and global institutions help a lot by setting green manufacturing goals which, when met, help to improve the ecological impact of manufacturing processes. All these initiatives surpass meeting ecological challenges caused by industrial processes and assure sustainability in the long run.

The future of manufacturing in China beyond 2025

Looking past 2025, manufacturing within China is set to evolve with the adoption of greater automation and the integration of advanced digital technologies with an emphasis on sustainability which would affect the global share of manufacturing. Productivity and quality control will improve through incorporating artificial intelligence (AI), robotics, and sophisticated manufacturing systems. Moreover, alongside innovation, it is expected that China will focus on reducing its carbon footprint by utilizing cleaner energy and enforcing sustainability policies. Moreover, changing patterns in global supply chains could lead to higher investment in domestic production to self-sustain, which is anticipated to further these changes. All these factors suggest that the region will continue to grow with a focus on efficiency, adoption of technology, and sustainability.

Frequently Asked Questions (FAQs)

Frequently Asked Questions (FAQs)

Q: How did China become the global manufacturing leader?

A: The leading manufacturing country China has come into existence due to a multitude of reasons including low labor, immense government spending in infrastructural facilities, and policies that promoted external investment. The integrated manufacturing base, along with proficient production capabilities of a diverse range of goods has enabled China to capture a major share of the international market of manufactured goods.

Q: What is China’s current share of global manufacturing output?

A: The latest reports reveal that China holds around 30 percent of the international market of manufacturing. Regardless of obstacles like increasing competition from new emerging economies, inflation, and rising labor costs, this value has remained constant over the past couple of years.

Q: Is China’s grip on global manufacturing starting to slip?

A: China certainly still holds onto its dominant manufacturing sector, but many factors come together that indicate a decline. Rising pay rates, eco-friendliness, and the ongoing trade war with the US are forcing many businesses to consider relocating their manufacturing plants. Moreover, Vietnam and India are already surging forward as competitive options to China for specific manufacturing niches.

Q: What is the comparison between manufacturing in China and the United States?

A: The manufacturing output from China is way higher than that of the United States. It is hard to tell exact values, but estimates put Chinese manufacturing value added at over one and a half times American value. American manufacturing has for quite some time now, and to add further complications, China has seen growth in these industries over the past two decades which has caused a significant reduction in value-added competitiveness.

Q: What is the total amount China gets from manufacturing exports?

A: According to global estimates, China earns a lot of money from manufacturing exports which can exceed millions of dollars every year. The total amounts seem to be in the trillions. As for China’s exports, those are primarily manufactured and are expected to eclipse 3 trillion dollars in 2024. This again shows how powerful China’s economy is becoming and as such China will continue to be one of the most important players in global trade. This furthers China’s position as the leading exporter of manufactured goods in the world.

Q: In which area does China outperform South Korea in terms of manufacturing?

A: South Korea is a major hub for electronics and automobiles, and while it does contribute in many ways, it doesn’t come close to the amount China produces. The output of China is several times greater than that of South Korea’s manufacturing. Nevertheless, South Korea is very well known for high-end tech manufacturing and they stand out in other industries like semiconductor and display manufacturing technologies.

Q: What do experts predict about China’s manufacturing industry in the future?

A: Though there are obstacles ahead, experts believe that China will continue to be the leading manufacturing powerhouse in the world for the foreseeable future. The Chinese government has a high expectation with its policies, such as which aim for China to take the lead in sophisticated manufacturing by the year 2025. However, projections could change due to international economic factors, technological progress, or tensions in world politics.

Reference Sources

1. Resolving the “big but not strong” predicament of the manufacturing industry in China from the point of view of China-US comparison using the gravity model and sustainable livelihood framework.

  • Authors: Liangping Xu, Yaowu Wang, Yi Liu
  • Published: March 24, 2022
  • Summary: This study analyzes the impact of America’s dominance on China’s manufacturing industry, which remains large in size, but weak in structure. It emphasizes core competitiveness challenges, such as highly disintegrated production networks and low workforce productivity. The authors offer solutions through the Gravity Model and Sustainable Livelihood Framework advocating for stronger policy support regarding technological improvements alongside a conducive business environment as a way to bolster China’s manufacturing capabilities.
  • Methodology: The research utilizes a combination of Gravity and Sustainable Livelihood Frameworks in a single case study of China’s manufacturing industry vis-a-vis the United States’ (Xu et al., 2022, pp. 1361–1371).

2. Drivers of Exports Competitiveness in Manufacturing: A Comparison between China and Germany

  • Author: Jingsong Hao
  • Published: April 27, 2023
  • Summary: This paper looks at the export competitiveness of China and Germany about China’s and Germany’s labor market conditions and non-price factors. It finds that China’s advantage in exporting manufactured goods is largely due to its cheap labor, whereas innovation and product quality are what make German exports competitive. The study concludes China has captured a lot of market share but continues to struggle with high-value-added exports.
  • Methodology: The research uses labor market and non-price competitiveness factors as the basis of comparative analysis of these two economies (Hao, 2023).

3. Economic and Climate Benefits of Electric Vehicles in China, U.S., and Germany

  • Authors: Xiaoyi He and Others
  • Published On: August 15, 2019
  • Summary: While not explicitly about production, this paper sheds light on the production processes of Electric vehicles (EVs) in China relative to the U.S. and Germany. It illustrates that although there is a similarity in production costs and technical skills, there is a massive gap in customer requirements and economic environments. The study calls for attention to the regional particularities in manufacturing strategies.
  • Methodology: The study employs travel patterns for light-duty passenger vehicles in the three countries to measure the cost and climate benefits of EV competition(He et al., 2019)

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