China’s Industrial Policy: Driving 21st Century Economic Dominance and AI Supremacy
Brief news summary
China’s expansive industrial policy plays a crucial role in shaping the 21st-century global economy. Its state-driven approach to nurturing new industries, identifying winners, and advancing technology attracts both admiration and criticism worldwide. Kyle Chan of Princeton University likens China’s efforts in artificial intelligence (AI) to the Manhattan Project, suggesting that the race for AI dominance will occur not just between nations like the US and China but among leading Chinese cities such as Hangzhou and Shenzhen. This massive state involvement in industrial planning is complex and often difficult for outsiders to fully grasp, yet it remains a central factor in China’s economic trajectory and influence. Amidst broader global economic challenges—including regulatory shifts in the US, trade disputes, and rising bond yields—China’s industrial policies stand out as a decisive force shaping future technological and economic landscapes.The country’s vast industrial policy defies simple human understanding May 29th, 2025 If China comes to dominate the economy of the 21st century, much of the credit will go to its industrial strategy. The government’s efforts to develop new industries, create market leaders, and drive technological progress elicit both admiration and frustration from international observers. Kyle Chan of Princeton University recently likened China’s policies to the Manhattan Project, which produced the atomic bomb.
He argues that, based on current trends, “the battle for supremacy” in artificial intelligence (AI) will not be between America and China as whole nations but rather among leading Chinese cities like Hangzhou and Shenzhen. This article was featured in the Finance & Economics section of the print edition under the headline “Paperclip counter” From the May 31st, 2025 edition Explore stories from this section and beyond in the contents list ⇒Explore the edition Trump’s financial regulators vow a revolution The regulatory pendulum swings dramatically India sees a chance to resolve its investment slump Global trade disruptions offer a rare opportunity Courts block Trump’s tariffs. Can he sidestep their rulings? American trade policy remains in turmoil Shareholders confront a major new challenge: currency risk Analyzing it is now more crucial than ever; managing it is a nightmare Why AI hasn’t replaced your job And any widespread job losses still seem far off Surging bond yields pose risks Long-term borrowing costs are rising, not only in America
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China’s Industrial Policy: Driving 21st Century Economic Dominance and AI Supremacy
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