“The Middle East has oil, we have rare earths”: China’s Legendary business reformer Deng xiaoping is said to have already known in 1987, were the People’s Republic should strategically invest.China has targeted the processing adn export of the minerals since the 1980s, without which neither smartphones nor rockets, electric cars or wind turbines work. Today china controls a good 60 percent of the mining (see graphic) and 90 percent of global processing rarely.In the trade dispute wiht the united states, they have become a crucial lever with which China’s leadership against Trump’s high import duties.Rare earths are only one, even if the best known example of how China has identified specific markets in which it wants to achieve leadership on the world market. In 2015 the goverment passed the project Made in China 2025 to make China an autonomous high-tech producer. It also meant the end of China’s role as an extended workbench of international corporations, with cheap workers. Since then, billion dollar investments in sectors such as information technology, e-mobility or medical technology. China has long been in numerous areas of the world market leader. We show five categories as an example:
Overview:
Antibiotic
In 2022 during the corona crisis, the dramatic consequences of pharmaceuticals can have: because of the foreclosure of China in the course of the strict zero-cover policy Fewer active ingredients for antibiotics were produced. Consequently, active ingredients such as amoxicillin suddenly became scarce in the USA and Europe.
Chinese manufacturers dominate the world market in vital antibiotics. China’s pharmaceutical industry has focused on producing simple actors and starting materials that are used in generics since the early 2000s. Antibiotics are mainly generic today, i.e. medication that are not protected by patents. Many generics are produced in India – but its companiesChina dominates the production of lithium-ion batteries, controlling the majority of cell production, chemical production, and raw material processing. Over 70 percent of global battery production now originates from Chinese facilities,and China refines graphite,a key battery component.
State support has fostered technical advancements in China’s electromobility sector, but overcapacity has led to price reductions and shrinking profit margins. Chinese manufacturers like BYD and CATL are aggressively exporting electric vehicles and batteries globally. The Chinese EV market is experiencing consolidation, with only around 50 of 300 startups remaining, and projections suggest only seven will survive in the medium term.
Lithium iron phosphate (LFP) batteries are experiencing rapid growth, with almost half of all e-car batteries built in 2024 being LFP type, 80 percent of which are made in China.
International competition is proving challenging,with companies like Northvolt facing bankruptcy and the EU market share of South Korean companies like LG Energy Solution expected to decline.
Chinese companies have dominated global steel production for decades, surpassing Japan as the largest manufacturer in 1996. In 2023, China produced over half of the world’s raw steel, around one billion tons. India follows with 140 million tons, then Japan (87), the USA (81), and Russia (76).Twenty-seven of the 50 largest steel manufacturers were Chinese in 2023, with BAOWU group as the world market leader.## The Rising Tide of Chinese Wind Turbine Manufacturing: A Global Shift
The wind energy sector is experiencing a dramatic reshaping of its global landscape, largely driven by the rapid advancements and aggressive expansion of Chinese manufacturers. China’s commitment to renewable energy, coupled with significant state support, is positioning the nation as a dominant force in wind turbine production and deployment worldwide.
### china’s Dominance in Wind Power Capacity
in the past year, China has added approximately 80 gigawatts (GW) of new wind power capacity – representing roughly two-thirds of the global annual increase [[1]].This remarkable growth isn’t confined to domestic projects; Chinese wind energy corporations are actively pursuing international opportunities, signaling a clear ambition to become leading global players. Companies like goldwind have already established manufacturing facilities in Brazil, while Envision reported its moast significant international business gains last year, undertaking projects across eight different countries. Strategic partnerships and direct investment are becoming commonplace, with Chinese firms building installations in Kazakhstan, establishing production lines in India, and collaborating with businesses in South Korea and Italy. This expansion is fueled by a national strategy to be at the forefront of the global transition to renewable energy sources.
### Europe’s Vulnerability and the Echoes of the Solar Industry
Historically, Europe has maintained a strong, self-sufficient wind turbine manufacturing base, with five major european companies controlling the majority of the market