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US Chamber warns Made in China 2025 may cost G7 economies $650 billion
The US Chamber of Commerce warns that China’s Made in China 2025 program could displace up to $650 billion of manufacturing exports from G7 economies by 2030, a loss equivalent to about 12% of the group’s total manufactured exports, the trade body said.
China’s government has advanced the Made in China 2025 initiative to secure global leadership in a number of sectors, the report said. Beijing has established commanding positions in the production of solar panels, the construction of high‑speed rail systems, and the manufacture of lithium‑ion batteries. State support has also enabled rapid market share gains in the global automotive, heavy machinery, and chemical industries, the chamber added. The document said that China’s industrial policy was becoming increasingly systemic and pervasive and that Beijing was actively strengthening its control over global value chains by using regulatory tools and measures of economic coercion.
The Chamber noted that aggressive state subsidization has narrowed the technological gap with the West in areas such as pharmaceuticals and artificial intelligence development. That dynamic, analysts warned, poses a risk of large‑scale deindustrialization in advanced economies and could undermine national innovation ecosystems.
Bloomberg experts cited in the report emphasized the danger of an irreversible erosion of manufacturing capacity driven by a sharp fall in private sector investment in the United States and Europe. The Chamber’s analysis from May 14, 2026, concluded that if current rates of Chinese expansion persisted, up to $650 billion of G7 manufacturing exports could be directly displaced from global markets by 2030.
The report said that ad hoc Western measures, including a patchwork of tariffs, have proved ineffective. It urged governments to adopt a coordinated strategy to protect critical supply chains, reduce strategic exposure, and develop a unified industrial policy to counter Beijing’s state‑led approach.
Published 18 May 2026
© InstaFintech Group
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© InstaFintech Group
