The Front Row Podcast #64- Arthur Kroeber: How China Became The World's Undisputed Industrial Superpower
Nov 28, 2025
Arthur Kroeber, a senior China economist and co-founder of Dragonomics, delves into China's rapid industrial rise. He explores the implications of the new Five-Year Plan and evaluates the outcomes of 'Made in China 2025,' pointing out its successes and inefficiencies. Kroeber contrasts China's system-building approach with the US's efficiency focus. He discusses the pivotal role of the EV market and how companies like Tesla have reshaped consumer perceptions. Additionally, he examines the dynamics of Chinese tech upgrades and the ongoing challenges posed by overcapacity.
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China Prioritized Systems Over Efficiency
- Made in China 2025 was a broad success: China built the world's largest manufacturing ecosystem and reduced reliance on foreign inputs.
- The program worked despite high waste and inefficiency because China prioritized system-building over marginal financial efficiency.
Different National Goals Shaped Outcomes
- The U.S. prioritized financial efficiency, which outsourced much manufacturing abroad and hollowed its industrial base.
- China focused on building capacity, allowing it to overtake the U.S. in manufacturing scale and ecosystem depth.
How JVs Often Failed Technology Transfer
- Joint ventures often became profit engines for multinationals, leaving Chinese partners passive and limiting direct tech transfer.
- Informal spillovers and employee spinouts provided more learning than many joint ventures themselves.
