Sunday, October 3, 2021

Chinese Stats Come Out-Competitive Position with U.S.

New statistics released from the The National Bureau of Chinese Statistics  on 09-29-2021 (See China Stats) opens up a couple of questions on global positioning. What we can gather from these statistics is that China is still expecting to expand its manufacturing base but is also seeks to draw in as much innovative capital as possible. The U.S. is struggling in its decision making abilities but can use this time to strategically place itself to enhance its slowly declining manufacturing base and revamp to double down on its innovative capacity by moving beyond prior disjointed paradigms/strategies (See Two Biggest Threats. Notice that the international market/China is not as big as a threat as the choices we make to stay competitive.). 

You can tell from some of the charts that China's economy is focused on material extraction, manufacturing, food production, communications, chemicals/materials, transportation, motor vehicles, machinery, and energy sources.  They are an economy that is heavily focused on manufacturing and cheaper products that come from extraction of resources (See China Tech and Manufacture Push). 

Competition in Doctors, Patents and 
Discoveries
What we might want to do is then go look at how "building" or "expansionist" societies are structured in the literature. Such societies uses resources to build infrastructure and continuously develop new rail roads, ports, material extraction, etc.. through partnerships with other nations. Likewise they are treating their digital structure like hard infrastructure and are not integrating into their economy well. They still seek new technologies and are actively encouraging intellectual companies and R&D to move to China. (See China US. Intellectual Competition.)


China also has been trying to integrate with international partners but the business community and economies are starting to question those economic arrangements. Some of this might be from overly aggressive pro-Chinese behaviors that have raised the stature of trade disputes and created shifts in China's international relationships. This isn't surmountable but brand reputation is important (This is why the U.S. must build its international brand as the "business" place where essential American values are upheld.) You can read McKinsey GlobalInstitute (MGI) China-World Exposure 2019 Report. 

Thoughts on U.S. Competitive Position

China is trying to build innovation to match their manufacturing while the U.S. is in a good position to enhance its existing innovative capital and refocus on its manufacturing based (The scenario will change in 10 years because a new digital economy is emerging and that will likely integrate technology with manufacturing for advanced results. If you don't build it now...we might not have the same strategic options in the future. )

Thus, strategically its going to make sense for the U.S. to refocus on the enhancement of innovation (i.e. education reform, clusters, communication networks, R&D, University-Industry partnerships, arts, etc...), social/stability structures (education again, social expectations, judicial/law integrity, performances-reward capitalism, unity, efficient governance, critical thinking leaders, bi-partisanship, universal values, tax reform, budgets, etc...) while enhancing the manufacturing base (infrastructure, training/education, resource development, partnerships-treaties, investments/FDI, investments/FDI, supply chains, etc...). 

Side note. This is part of an environmental scan of some innovative cluster theory work in meeting emerging challenges.

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