Nearly the entirety of our technology sector, our financial services sector, our pharma sector, our heavy equipment manufacturers, aerospace, just to name a few.
The first problem we face is chinese students in STEM subjects
There is nothing new under the sun that cant be learned in our elite universities
The second problem is how many American companies cut their own throats by manufacturing in china
Its a fools game where we give away all our knowledge to the chinese
Who in china needs to spend money on research and new ideas when America is doing it for them?
I have much more to say but you can see what I’m getting at
The fact that the Chinese have to continuously copy U.S. invention and innovation should tell you everything you need to know regarding how competitive their command economy system really is.
As far as U.S. firms manufacturing goods in China, who cares? The bulk of the value chain still remains in the U.S. , at the lowest order goods American consumers get those goods at lower prices at the highest order the most lucrative portions of the value chain (Design, Engineering and Development) remain U.S. based.
The bottom line is, China’s comparative advantages are derived solely from factors which are artificial and easy to duplicate, for example countries like Vietnam are already successfully doing it. In the 1980’s many people were saying that our companies couldn’t compete with the Japanese, they were clearly wrong, all it took was good ole fashioned Free(ish) Markets and American Entrepreneurial Spirit.