China has an upper hand because "reconfiguring supply chains is far more difficult, time-consuming, and risky for the US than for China," says Fabio Massimo Parenti, associate professor of international political economy and global studies at China Foreign Affairs University.
"China is the world's leading manufacturer across all sectors, with advantages in rare earth deposits and a higher innovation rate in frontier industries," Parenti stresses.
He argues that China's national production system outperforms the US due to its large domestic market, strong global presence, and cost-effective products.