China

Sales of Chinese hybrids and plug-in hybrids in Europe increased by a factor of 14 between August 2024 and August 2025

Countries in the Global South are key markets for Chinese and U.S.-allied national power industries, which require scale economies to flourish. U.S. policymakers should stop viewing them as a “backyard” and recognize that they are a key battlefield in an industrial war.

Boosting U.S. competitiveness in national power industries is necessary, but not sufficient to avoid losing to China. America also must take measures to slow the PRC’s progress toward global dominance. This report provides more than 100 actionable recommendations for the administration and Congress. Western allies should take many of the same steps.

Congress is right to flag Alipay over national security and data risks, but a blanket ban without first conducting audits or establishing reciprocity safeguards would be premature. Regulators should investigate the platform before Congress considers banning it.

Advanced manufacturers based in East Asia are expanding investment into the U.S. economy. Yet, many of their internal value chains remain anchored in China, giving the PRC significant leverage over U.S. interests. U.S. policymakers should respond both defensively and offensively.

If the USTR is serious about protecting U.S. consumers and businesses from copyright piracy and trademark counterfeiting, it should designate Chinese online platforms Temu, AliExpress, and SHEIN as notorious markets.

Maintaining R&D leadership in advanced industries is critical to U.S. economic competitiveness and national power. But on a size- and wage-adjusted basis, China is rapidly gaining ground. Congress needs to boost corporate R&D incentives to prevent America from falling behind.

The United States is at serious risk of becoming dependent on China for a wide array of key technologies and products, which would significantly shift the global balance of techno-economic power. Only fundamental policy change can potentially keep the United States from defeat.

The Chinese shipbuilding industry controls 55 percent of global market share, with exports increasing by 1,525 percent since 2004.

Letting Chinese EV and battery firms build in America wouldn’t revive manufacturing. It would reduce U.S. market share, hollow out domestic capabilities, and create new strategic dependencies.