China's Industrial Chain Becomes Indispensable to US Technologies Amid Trade Tensions

As trade tensions escalate between China and the US, a recent surge in orders for intelligent drive modules by Chinese manufacturer MyActuator highlights the deeply intertwined industrial chains between the two nations. This scenario mirrors the 2019 trade frictions, demonstrating the inextricable ties between Chinese and US industrial chains. The US has struggled to build "technological barriers" in areas like semiconductors and AI, but its companies face an unavoidable reality: China's industrial chain has become an indispensable support for the commercialization and practical application of their technologies.

Key Takeaways:

• China's industrial chain has become a crucial support for the commercialization and practical application of US high-end technologies, particularly in areas like semiconductors and AI.
• The US has struggled to build "technological barriers" in these areas, and its companies face significant challenges in manufacturing and applying their technologies.
• China has established globally leading capabilities in areas like hardware equipment and core components, which are essential for the development of high-end technologies.
• Artificially severing the mutually beneficial industrial linkage between China and the US could hinder the development of high-end US technologies and lead to supply chain disruptions and increased production costs.
• The advancement of high-end technologies depends on a virtuous cycle connecting application scenarios and manufacturing capacity, making cooperation between China and the US essential.
• Restrictive policies cannot change the deeply integrated industrial chains between the two countries without paying a heavy price, and the global industrial chain is more resilient than political games.

Statistics:

• The value of technology is never confined to theoretical breakthroughs in the lab, and it needs to be transformed into manufactured products and services.
• The US has long been plagued by the problem of manufacturing hollowing-out, with China establishing globally leading capabilities in areas like hardware equipment and core components.
• China has achieved large-scale application in industrial robots and accelerated its presence in cutting-edge fields like humanoid robots.
• The US has a first-mover advantage in certain areas of high-tech R&D, but its companies face significant challenges in manufacturing and applying their technologies.

Sources:

• South China Morning Post
• Chinese Commerce Ministry spokesperson