A Nation of Lawyers Confronts China’s Engineering State
As the Chinese economy surges forward, the U.S. has lost its capacity for physical improvement.
After Donald Trump announced ruinously high tariffs on China in the spring, a simple reminder of that country’s growing technological power forced him to back down. Shortly after Trump’s April 2 tariff announcement, Beijing abruptly suspended exports of rare-earth magnets.
Automakers around the world panicked. These magnets—manufactured in Chinese factories from crucial metals extracted mostly from Chinese mines—have become essential for building cars. Ford Motor paused production at a plant in Chicago. Automotive-lobbying organizations in the United States and Europe warned that car companies were weeks away from halting production. A few reportedly were considering moving some production to China in order to maintain access to supplies. On May 12, the White House agreed to lower tariff rates for China before it had announced trade deals with Europe, Canada, Japan, or other allied countries.
Enjoy a year of unlimited access to The Atlantic—including every story on our site and app, subscriber newsletters, and more.
Become a SubscriberChina produces 90 percent of the global supply of rare-earth magnets, which are not the only products that Beijing can deny the rest of the world. Decades of industrial policy and fierce entrepreneurialism have created the world’s mightiest manufacturing machine. Chinese firms are also dominant producers of many pharmaceutical ingredients (especially for antibiotics and ibuprofen), battery materials, and entire categories of electronics components—not to mention smartphones, household appliances, toys, and other finished goods that American consumers want.
When you buy a book using a link on this page, we receive a commission. Thank you for supporting The Atlantic.
