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The US Chamber of Commerce says China is entering a “new phase of global impact” as Beijing accelerates state intervention in manufacturing, services and advanced technologies. The group argues that China’s policies are deepening other countries’ dependence on Chinese supply chains, creating risks for the global economy.
In a warning issued in the foreword of a Rhodium Group report on China’s industrial policies prepared for the US Chamber, the chamber says China is using tools including export controls to consolidate its position in global supply chains and to respond to other countries’ efforts to diversify away from China.
The US Chamber argues that the world has previously undervalued China’s earlier industrial initiatives, including the “Made in China 2025” program, which aimed to reduce reliance on foreign technologies.
According to the Rhodium Group report, China’s industrial policy is evolving from sector-specific interventions toward a “comprehensive industrial policy.” The report says China is seeking to broaden its leadership across sectors such as critical minerals and magnets, spanning a wide range of industrial products, while also paying more attention to services.
The report also links China’s industrial strategy to trade outcomes. It says sustained government support and weak domestic demand have helped accelerate growth in China’s merchandise trade surplus. It adds that China is moving away from a low-cost production model and has made progress in chemicals, machinery and equipment, including by expanding market share in electric vehicles and clean energy.
The report emphasizes that global dependence on China’s supply chains is deepening for an increasing number of strategic products. It argues that China uses regulations to strengthen control over critical supply chains.
It also notes that China’s latest five-year plan includes, for the first time, content focused on advanced technologies such as biotechnology, nuclear energy and brain–computer interfaces. The report says this indicates a shift from targeting strategic industries to a broader effort to reshape the wider industrial ecosystem.
The report says China’s rising trade surplus reflects both success in moving up the value chain in high-tech goods and success in substituting domestic products for imports.
At the same time, it says Chinese firms are increasingly reliant on overseas revenue. The report states that the share of overseas revenue among China’s top 500 companies averaged 47% in 2024, roughly on par with US firms.
Camille Boullenois, the report’s lead author, told the Financial Times that China’s changing industrial policies pose a major challenge to the economic dynamics of countries such as Germany and other advanced industrial economies.
“China’s rise is eroding some of the last areas where those countries still enjoy a technological and industrial edge, such as chemicals, autos, machinery and robotics. China is rapidly gaining market share in these areas. If countries do not act now, the industrial landscape could look very different in a few years,” Boullenois said.
The report also highlights that the challenge is particularly acute for production- and export-focused economies such as Japan and South Korea. Jorg Wuttke, former head of the European Chamber of Commerce in China, said Europe faces both overcapacity in China and the euro’s appreciation against the yuan.
The warning was issued as President Donald Trump prepared to visit Beijing to attend a summit with President Xi Jinping.
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