The Intelligence from The Economist The great wheel: China’s Robotaxi revolution
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Dec 2, 2025 
Rachna Shambhog, Business affairs editor at The Economist, dives into China's remarkable leap in innovation. She discusses how the nation has transformed from a copycat to a leader in robotaxis, highlighting its vast scale and efficient pilot programs. The conversation shifts to China’s pharmaceutical revolution, moving from generics to cutting-edge drug development. Rachna also explores the driving forces behind this rapid innovation, including talent and adaptable regulations, and examines the global consequences of cheaper Chinese technology.
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China's Robotaxi Advantage Is Systemic
- China leads in robotaxis because scale, low-cost manufacturing and sensor production cut vehicle costs dramatically.
- Regulators and permissive local testbeds plus fierce domestic competition accelerated real-world deployment.
Domestic Supply Chains Crush Hardware Costs
- Chinese firms can build robo-taxi hardware for roughly $40,000 versus $130,000–$200,000 in the US, driven by local supply chains.
- Vertical manufacturing of EVs and sensors compresses costs across the stack.
China Has Become A Major Drug Innovator
- China moved from generics to innovation and now ranks as the world's second-largest developer of new drugs.
- A large share of global clinical trials now runs in China, speeding R&D and approvals.