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China ramps up AI and advanced manufacturing despite doom forecasts
The article says China is moving beyond low-cost production into higher-end manufacturing, including batteries, electric vehicles, and a domestically produced AI supercluster.
The Guardian Business argues that while Western commentators have long predicted the end of China’s economic miracle, China has continued to expand into more advanced, investment-heavy industries that could reshape global markets.
According to the piece, early growth relied on low-cost manufactured goods, but a second phase, labeled “China 2.0” by the author, pushed the country to invest heavily in higher-end manufacturing. The article cites leadership in areas including batteries and electric vehicles, along with gains in sectors such as solar panels and the ability to make key equipment domestically.
The article also links global industrial competition to politics, saying the perceived threat from Chinese manufacturing has contributed to political pressure in Germany, including support for far-right parties.
The Guardian Business notes critics’ concerns as well, including excess capacity and a model that depends heavily on investment, with production that reportedly exceeds what the country can consume domestically. It adds that China’s buildout includes domestically produced AI infrastructure, pointing to an announced supercluster at a Shanghai AI conference in July 2026.