No coincidence that China is global highland of industrial innovation

AFTER a period of confusing noise about China's "overcapacity," some Western media are slowly starting to return to reality. The Financial Times recently published an editorial titled "Chinese electric vehicles are more of an opportunity than a threat," saying the United States and Europe should let China to produce cost-effective cars in the cheapest segments to help achieve economic decarbonization. Even The Economist, which is often biased against China's economy, acknowledged the country's growing role as the world's research and development (R&D) laboratory. The magazine also noted that foreign chief executive officers now see China's brainpower and its innovation-curious regulatory regime as crucial ingredients of their companies' global success.

The recent hype about China's overcapacity began with the fear of the so-called China shock 2.0. Unfair subsidies and cheap dumping were the habitual accusations pinned on China's industries. However, these accusations were made too arbitrarily, and even the critics themselves are finding it difficult to explain why industries such as electric vehicles have gained an edge in China, or why China has become the world's R&D lab, as noted by The Economist. The deeper we look, the more we find the absurdity of blaming China's industrial development.