Reference News Network, October 20 report: The website of the Australian Financial Review published an article titled "Three Reasons Why China Is Better Than the United States (and the World)" on October 17. The author is Jessica Sill. The full translation is as follows:

The trade war between the United States and China has once again "escalated," this time around the minerals and machinery that power the modern world. And this time, China seems to have the upper hand.

After years of heavy state investment, Beijing has taken the lead in three key technological areas that convert electricity into power: batteries, electric motors, and power electronics (or circuit boards). At the same time, China also controls the supply of rare earth minerals needed for these technologies.

This is not just a matter of industrial policy. Power is crucial for national defense because components that drive cars and wind turbines also drive drones and artificial intelligence systems.

In a report, Gao Yihao and Layla Kawaja from Dragonomics Consulting wrote: "After decades of effort, China finally has some real technological advantages over the United States."

The importance of the chip industry is well known. To achieve mass production of drones, a country needs to master the "power technology stack" as called by American economist Noah Smith. You also need design expertise and minerals, from lithium and cobalt to rare earth elements like neodymium.

Smith wrote in a blog: "If you want to defend your country, you have no choice but to ensure the security of the 'power technology stack.' If you can master it, you will also be able to control a wide range of modern manufacturing."

After defining electrification as a climate issue for many years, governments around the world are beginning to realize its strategic importance. Now, control over the "power technology stack" not only determines who can develop cleaner cars, but also who can develop smarter weapons, automated factories, and artificial intelligence infrastructure.

From Washington to Tokyo, from Beijing to Berlin, officials are racing to secure domestic supply chains for batteries, engines, and chips.

In the previous industrial wave, each industry had its own supply chain: car manufacturers did not produce televisions, and electronic companies did not produce airplanes.

Electrification broke down these barriers. Sam D'Amico, founder of the U.S. startup "Pulse Labs," said: "Motors are replacing internal combustion engines as the fundamental technology driving machines."

This fusion explains how Xiaomi, famous for smartphones, became one of China's top electric vehicle manufacturers in a few years. This is also why BYD rose from a small battery supplier to become the global leader in electric vehicle sales.

The more products a company produces using the same electrical components, the greater the economies of scale, and the harder it is for competitors to catch up.

Investors call this fusion the "electrification-industry bridge": the moment when the digital world and the real world converge.

China realized this earlier than most countries. Decades of industrial planning have placed it in a dominant position in every layer of the "power technology stack."

Smith said: "Western countries have made slow progress in accepting the 'power technology stack,' because they insist on viewing electrification as a climate issue, rather than a matter of national defense, manufacturing, and cheap electricity."

Although Western countries have invested heavily in chip foundries and battery factories, their industries still rely on Chinese inputs. For policymakers, the challenge is not to establish a single national champion enterprise, but to support an entire ecosystem of specialized suppliers.

Some countries are acting quickly. The Japanese Ministry of Economy, Trade, and Industry has bundled subsidies for battery recycling, power semiconductor factories, and rare earth processing into an "electrification-industry policy." The U.S. Department of Defense has begun directly purchasing domestically produced drones and battery production lines. But transformation will still take several years, and there are high risks involved.

Two centuries ago, the countries that built railways ruled global trade. In the 20th century, the countries that controlled cars and oil shaped geopolitics. In this century, power will belong to those countries that can manufacture power transmission and distribution equipment.

Smith said: "This is the lesson China has already learned while the West has not yet learned." (Translated by Wang Haifang)

On July 16, at the third Chain Expo, participants learned about the Ningde Time Shenzhi PLUS battery at the intelligent automobile chain exhibition area. (Xinhua News Agency)

Original text: https://www.toutiao.com/article/7563112890232816179/

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