Opinion | America Has an Edge Over China. Why Won’t We Use It?

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by Jonas Nahm

February 24, 2026

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The United States has a significant technological edge over China but is failing to fully leverage it in manufacturing, according to recent analyses. While America invests heavily in advanced technologies like artificial intelligence (AI) and automation, much of this innovation remains isolated in research labs, venture capital portfolios, and data centers rather than being integrated into industrial processes. In contrast, China has aggressively adopted these technologies on a massive scale, embedding AI into its manufacturing operations to drive productivity gains and efficiency. For instance, Chinese factories now produce more per worker than their U.S. counterparts, with Tesla’s Shanghai plant outpacing its California counterpart in output. China’s ability to rapidly deploy automation and robotics is a key factor in its manufacturing dominance. The country has built over 30,000 smart factories and installed more than half of the world’s new industrial robots in 2024. Companies like Zeekr, a Chinese electric vehicle manufacturer, have implemented advanced AI-driven systems that allow robots to adapt to real-time conditions on the factory floor, handling variations and working safely alongside human workers. Similarly, Midea, one of the world’s largest home appliance manufacturers, has reduced response times from hours to seconds using an AI-coordinated system. The gap between U.S. and Chinese manufacturing is not due to lack of effort but rather a failure to adapt to modern production methods. Reindustrialization efforts under both the Biden and Trump administrations have focused on rebuilding American manufacturing, often attributing challenges to unfair subsidies or market distortions. However, the real issue lies in the U.S. failing to organize its technological strengths into comparable gains. While Washington views AI as a tool for research and development, China treats it as an integral part of production, using it to guide machines, schedule work, and detect problems in real time. This shift is critical for understanding why China has gained a significant edge in manufacturing efficiency and productivity. The U.S. must address this challenge by integrating advanced technologies into its factories to maintain competitiveness and create high-skilled jobs. The stakes are high: closing the gap could not only boost American economic strength but also ensure long-term

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Originally published on NYT Homepage on 2/24/2026