Executive summary
- The People’s Republic of China (PRC) pursues industrial policy for geopolitical reasons as well as economic ones. It aims to lead the so-called ‘fourth industrial revolution’ in technologies such as Artificial Intelligence (AI), quantum computing and biotechnology, supplanting the United States (US) as global leader in technology.
- The Chinese Communist Party’s (CCP) central management of the PRC’s economy has led to issues in productivity and overcapacity. Chinese firms produce more than domestic demand requires, which results in a reliance on exports to sustain economic growth.
- Although international trade news has been dominated recently by American tariffs, the PRC’s industrial policies have an outsized impact on global trade. Developing and middle-income countries, such as Brazil, Mexico and Turkey, have taken action to protect their industrial bases against the PRC’s ‘dumping’ of goods.
About the author
George Magnus is a Member of the Advisory Board to the China Observatory at the Council on Geostrategy. He is also a Research Associate at the China Centre at the University of Oxford and at the School of Oriental and Africa Studies in London, as well as the author of Red Flags: Why Xi’s China is in Jeopardy.
Disclaimer
This publication should not be considered in any way to constitute advice. It is for knowledge and educational purposes only. The views expressed in this publication are those of the author and do not necessarily reflect the views of the Council on Geostrategy or the views of its Advisory Council.
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No. 2025/16| ISBN: 978-1-917893-13-8