Just outline the five where they're dominant and the areas that they're growing. Right. So we looked with our Bloomberg Intelligence and Economics colleagues at 13 key technologies that are part of China's Made in China 25 initiative from about ten years ago. The five areas where China is clearly leading as of this year would be drones, high-speed rail EVs, as you were just discussing, solar panels, and graphene. So some advanced materials where their competitors will be things like semiconductors, AI, machine tools, LNG carriers, they have like a big ship target, and drugs like pharmaceuticals. Where they're really behind is commercial aircraft. Interesting, Cheryl, as you just read out this sort of dream smorgasbord of Bloomberg Technology stuff. I think one thing we reflect on in the show is that some of those key areas, right, semiconductors, even drones in TV, it's very policy-focused. In other words, the government in China

change their mind, but they're often willing to support those industries through finance or policy to make them successful. Indeed. I mean, industrial policy is a big part of it. China's new energy vehicle targets and plans go back to around 2009. So they predate Made in China 25. How they do this, it's hard to quantify, but there are a lot of subsidies for buyers, for firms. There's state-backed credit, state-backed investment funds, government procurement, etc. But I think BYD is a good example. So the EV sector clearly benefited from Chinese industrial policy, but the industrial policy also didn't pick winners, so to speak. Bright was the one that rose to the top, in part because consumers are ultimately the ones deciding, and now it is a globally competitive firm. Let's just talk about what this means for the US as well, because the US has been trying to prevent great strides in

certain areas of technology. AI chips come first to mind by limiting trade from the US, but also from its allies. What does this do if China gets there anyway? The U.S. measures in meteorites. Tariffs are kind of more macro in terms of heading many things. The export controls are very much focused on advanced semiconductors and things related to that, like artificial intelligence. The US concern, as articulated by Jake Sullivan recently, is basically that they're afraid that China, having an advanced lead on these things, will have a military application, particularly for things like artificial intelligence. But there's also an economic side because these are the industries of the future. And from a competitiveness perspective, especially if you think China is benefiting from its own industrial policy, the US thinks, you know, in a sense it's, quote, unfair and that they don't want to be left behind. Jared, Let's do semiconductors as one.

final case study, please, partly because it's also been in the news cycle, right? Yes, US export controls. But China's responded and tried to champion specific names. What did your research find in that space? So I mean, China's main fab is SMIC, right? And SMIC is a sort of TSMC equivalent. It receives heavy subsidies. But then there are other firms like Huawei, which is ultimately buying the chips that they're making that it also being state-supported. So in general, I think the US export controls have probably done less damage, meaning the US government would have hoped two years ago. China is still making strides, but it's also clear that, or at least maybe debatable how good the strides are. I mean, even recently Bloomberg was reporting that maybe Huawei was getting chips from TSMC through a carve-out. Right. So there's still leakage in the export controls. And this is something that the Biden administration in its final days is

Why the US Can't Contain China’s Tech Supremacy Drive

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