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    "original_url": "https:\/\/www.nytimes.com\/2026\/02\/10\/opinion\/china-ai-ev-trump.html?campaign_id=9&emc=edit_nn_20260210&instance_id=170857&nl=the-morning&regi_id=122976029&segment_id=215048&user_id=b25c5730c89e0c73f75709d8f1254337",
    "parsed_content": "AdvertisementSKIP ADVERTISEMENTOpinionSupported bySKIP ADVERTISEMENTGuest EssayI Just Returned From China. We Are Not Winning.Feb. 10, 2026, 5:02 a.m. ETCredit...Andrey KasayListen to this article \u00b7 6:43 min Learn moreShare full articleBy Steven RattnerMr. Rattner, a contributing Opinion writer, served as counselor to the Treasury secretary in the Obama administration.A few weeks ago in New York, I was sitting at a dinner organized to discuss American trade when the conversation swiftly turned to China. Well-credentialed experts took opposite stances: Some supported President Trump\u2019s muscular, aggressive positions, while others pushed for a less confrontational, more conventional approach.I am no expert on trade, but I have made investments in China for years and had just returned from a weeklong visit. Eventually summoning my nerve, I suggested that neither approach would work. China is just too formidable as a rival \u2014 as well as a critical manufacturing powerhouse \u2014 to be reined in by diplomacy or an aggressive shift in policy. The only real solution is to get our house in order and beat China at its own game.The need to do so is only growing, because the commotion of Mr. Trump\u2019s first year back in office has set America back. In addition to manufacturing, China is threatening America\u2019s pre-eminence in a range of fast-growing sectors, including artificial intelligence and pharmaceutical drug development. While he has tried to cut our spending on important government functions like basic research, China has made them national priorities.China\u2019s progress in A.I. has been stunning. While it still lags the United States in terms of cutting-edge semiconductor chips, China has an abundance of another key ingredient of A.I. success: power. It has more than twice as much generating capacity as we do, and some of its data centers pay half as much as ours for power.That has helped it develop products like Manus, with exceptional speed. An A.I. agent with performance rivaling ChatGPT\u2019s, it was sold to Meta for more than $2 billion shortly after my visit.Sign up for the Opinion Today newsletter Get expert analysis of the news and a guide to the big ideas shaping the world every weekday morning. Get it sent to your inbox.Human capital is a key ingredient of China\u2019s success. I met with innumerable young entrepreneurs whose energy and intelligence at least matched that of their Silicon Valley counterparts, including one billionaire who still sleeps in his office.For all of Mr. Trump\u2019s tariff bluster, we are not winning this trade war. The Asian goliath powers on as the world\u2019s largest exporter, its trade surplus having notched a record $1.2 trillion last year. That overall increase suggests that many Chinese goods are simply passing through middleman countries before reaching U.S. shores. Tariffs or no, everybody needs Chinese goods.Consider cars. During my trip, I toured Xiaomi, a telecommunications equipment manufacturer that announced its entry into the electric vehicle industry just five years ago. In a sprawling facility almost devoid of humans, hulking mechanical creatures that look like robotic dinosaurs effortlessly nudged aluminum panels into place as cars moved down the line. In the lobby sat a yellow sports car that could easily be mistaken for a Porsche.I visited a robotics company where what looked like plastic children\u2019s toys scampered across the floor, demonstrating the firm\u2019s progress toward building humanoids that could replace humans in certain tasks. (In 2024, China installed nearly nine times as many industrial robots as the United States.)After a visit, Ford\u2019s chief executive, Jim Farley, last summer pronounced China\u2019s in-vehicle technology \u201cfar superior\u201d to American models\u2019 and described Chinese progress as \u201cthe most humbling thing I\u2019ve ever seen.\u201d Coincidentally \u2014 or not \u2014 Ford recently stopped production of its F-150 electric truck and took a huge $19.5 billion write-down on its electric vehicle efforts.Then there\u2019s drug development. Just a few years ago, China was still licensing many of its pharmaceuticals from companies overseas. Now it licenses more drugs to other countries than it licenses from them, and it has surpassed the United States in its number of clinical trials.Of course, China still faces challenges. The consequences of a still deflating property bubble continue to ripple. Partly as a result, consumers have yet to open their wallets. With slowing growth, youth unemployment surged to nearly 20 percent (and has backed off only slightly). Investment has fallen.That adds up to the fact that there are two Chinese economies: a sluggish domestic economy and the colossus that dominates global manufacturing while making extraordinary progress in fast-growing, technology-oriented fields that have long been American led.China has achieved this success in part via its model of state-directed capitalism. When the government realized it was losing the A.I. race, it made clear that catching up was a national priority and backed that up with money, regulatory relief and the development of huge amounts of electricity-generating capacity. We can see the results.Competing against China will be difficult under the best of circumstances. Clearly we need to rethink our industrial policy \u2014 the way we can deploy our government resources to support strategically important industries, which is our version of state-directed capitalism. Unfortunately, the Trump administration\u2019s incoherent policies are creating a truly bad set of circumstances.For starters, we need to reverse the cuts that Mr. Trump has made to investments in science and other areas.And while I\u2019m plenty skeptical about the ability of a democratic government to pick winners, we no longer have the luxury of confining Washington to the sidelines. In particular, we should focus on industries of the future, many of them technology related, and tone down Mr. Trump\u2019s emphasis on traditional metal-bending manufacturing. For example, thanks to the CHIPS and Science Act passed under President Joe Biden, huge semiconductor fabs are under construction in Arizona and elsewhere.Redirecting government goes beyond spending. We lack critical minerals not because they are rare but because securing permits for new mines and processing facilities is so difficult. We can surely find a way to develop our mining capabilities without compromising reasonable environmental standards.What Mr. Trump should learn \u2014 as should everyone else \u2014 is that we are not going to beat China by imposing tariffs or by attempting to negotiate trade agreements that China would probably violate. (Importantly, sound industrial policy does not mean taking stakes in companies or demanding royalties, as the Trump administration has been doing.)Outpacing China has to begin at home, by getting our own economic house in order, a challenge that also should motivate Mr. Trump to rethink a large range of his policies.The Times is committed to publishing a diversity of letters to the editor. We\u2019d like to hear what you think about this or any of our articles. Here are some tips. And here\u2019s our email: letters@nytimes.com.Follow the New York Times Opinion section on Facebook, Instagram, TikTok, Bluesky, WhatsApp and Threads.Steven Rattner is a contributing Opinion writer and was a counselor to the Treasury secretary in the Obama administration. @SteveRattner \u2022 Facebook Read 1,084 commentsShare full articleRelated ContentAdvertisementSKIP ADVERTISEMENT",
    "ai_headline": "I Just Returned From China. We Are Not Winning.",
    "ai_simplified_title": "Steven Rattner Analyzes China's Economic Rise",
    "ai_excerpt": "Steven Rattner argues that the US is not winning the economic competition with China, highlighting China's advancements in AI, manufacturing, and drug development. He suggests the US needs to focus on its own economic strengths and rethink industrial policy to compete effectively. The article criticizes Trump's policies and advocates for increased investment in science and technology.",
    "ai_subject_tags": [
        "China",
        "Economy",
        "Trade",
        "Artificial Intelligence",
        "Manufacturing",
        "Industrial Policy",
        "United States",
        "Trump Administration"
    ],
    "ai_context_type": "Opinion",
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