China Expands State Power to Dominate Global Supply Chains

• •China is expanding state support across multiple sectors to enhance global supply chain dominance.
• •The country's manufacturing trade surplus has nearly doubled to around USD 2 trillion since 2019.
• •Beijing is focusing on artificial intelligence and frontier technologies to drive demand and innovation.

A report by the US Chamber of Commerce reveals that China is intensifying state support across various sectors, including electric vehicles, semiconductors, and clean energy, to bolster its global manufacturing dominance. This strategy is increasing global reliance on Chinese supply chains, with a significant trade surplus that has nearly doubled to around USD 2 trillion since 2019. The report indicates that Beijing is not reducing industrial capacity despite overcapacity concerns, instead pushing firms to enhance production technologies and lower costs. The focus on artificial intelligence and frontier technologies is also highlighted, with government enterprises creating demand for new technologies. This comprehensive industrial policy is seen as a response to both domestic and international pressures, reinforcing China's position in the global market.