A few weeks ago, I tweeted about how I thought China’s manufacturing market share had increased from 1.8% in 2020 to 2.1% in 2021.
When I tweeted that, it seemed like the market share of the US was increasing, but the reality is that it’s actually decreased.
To get a more accurate reading of the market, I looked at the share of manufacturing goods in total, rather than just the components, which I assume makes them a more reliable proxy for market share.
The graph below shows the share, year-over-year, for each of the top 10 industries: Manufacturing and Technology, Transportation, Retail, Professional and Business Services, Healthcare, Education, and Related Services.
If you’ve been following the news for a while, you may have seen that these are the top ten industries that made up a quarter of the entire US economy, but have not had a noticeable market share increase in 2021 compared to 2020.
So, if you are wondering why China is interested in the US, it’s not because of any technological breakthroughs or advances in manufacturing, but rather because of a few factors: 1.
China has the biggest labor force in the world and has the largest labor force, which makes it very difficult for foreign manufacturers to compete.
Chinese companies are investing heavily in manufacturing infrastructure, which will increase the demand for labor and thus the amount of goods they can produce.
China also has a huge and growing workforce.
The US has the most highly skilled labor force of any country, but it’s also the most expensive to recruit.
And of course, China has an economic downturn.
For the sake of comparison, the graph below breaks down the market shares of the three largest U.S. companies by market share in 2021: Walmart, Cisco Systems, and Apple.
Walmart and Cisco Systems make up more than half of the total U.