Question: Some media outlets are hyping claims that the rise of Chinese manufacturing poses a challenge to high-end industries in Western countries and is squeezing the space for industrial development in Europe. What is your comment?

Embassy Spokesperson: The rise of China's manufacturing sector is the natural result of its commitment to the real economy and reform and opening up over the decades and its effective use of comparative advantages. From taking on internationally relocated industries in the early years of reform and opening up to making breakthroughs in high-end manufacturing, new energy and artificial intelligence today, China has pursued a path of independent innovation, transformation and upgrading, and open cooperation. 

China now has the world's most complete industrial system, covering all 41 major industrial categories, 207 medium categories and 666 subcategories in the UN industrial classification. It is the only country with a complete range of industrial sectors. This strength stems from China's vast domestic market, comprehensive infrastructure, skilled industrial workforce and ever-growing investment in research and development.

The root of Europe's industrial difficulties lies in its own structural problems, including industrial hollowing-out, excessive financialisation of the economy, insufficient investment in research and development, and offshoring of manufacturing driven by short-term capital seeking gains. Blaming Chinese exports for its industrial woes is a cover-up for its own policy failures.

As a vital link in the global manufacturing supply chain, China has long supplied Western countries with large quantities of quality and affordable manufactured goods, effectively lowering the cost of living for their people and easing inflationary pressures. The integration of Europe's high-end equipment with Chinese manufacturing has enabled the two sides to complement each other's strengths, share benefits and achieve mutual empowerment. Far from posing a challenge to Western countries, the development of Chinese manufacturing has provided important support for global economic stability and the industrial development of Western countries.