In this special edition of the Hinrich Foundation’s podcast on global trade, the Association of Foreign Press Correspondents-USA sits down with Robert D. Atkinson, Senior Fellow at the Information Technology and Innovation Foundation (ITIF), to discuss China’s growing technological and industrial strength, the areas in which the West still holds an advantage, and what it must do to remain competitive.

China’s rise as a technological and industrial power has challenged long-held Western assumptions about how innovation, markets, and state intervention shape competitiveness, Robert D. Atkinson, Senior Fellow at the Information Technology and Innovation Foundation (ITIF), said. Its advantage rests not only on the size of its economy, but also on extensive, highly integrated supply chains, large-scale subsidies, and a state-directed model that aligns firms with national priorities. China already leads in electric vehicles, nuclear power, and telecommunications equipment, while advancing rapidly in robotics and investing aggressively in aerospace, biotechnology, and quantum technologies, he said.

By contrast, the West’s remaining advantages lie in powerful multinational companies, a strong entrepreneurial culture, and greater freedom to innovate. But they count for little if innovation cannot be turned into competitive production at scale. Efforts to translate technological strengths into industrial capacity are plagued by short-term financial incentives, fragmented policymaking, inadequate US research funding, and weak coordination among allies, Atkinson said. The central challenge is whether the West can marshal its strengths behind a serious, coordinated industrial strategy before China’s advantages become more deeply entrenched.

Tune in to this podcast organized by the Association of Foreign Press Correspondents-USA and supported by the Hinrich Foundation to unpack how China’s state-directed model has proven so effective and why pressure is mounting on the West to respond. The podcast is based on Atkinson’s recent paper for the Hinrich Foundation, “Is the West better than China?”

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Tune into the Hinrich Foundation’s podcast series for insights on international trade.