{"id":263288,"date":"2023-10-07T19:01:55","date_gmt":"2023-10-07T13:31:55","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=263288"},"modified":"2023-10-07T19:01:55","modified_gmt":"2023-10-07T13:31:55","slug":"how-china-grabbed-pole","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/how-china-grabbed-pole\/","title":{"rendered":"How China grabbed pole"},"content":{"rendered":"\n

Source: <\/strong>This post is created based on the article \u2018How China grabbed pole<\/strong>\u2019, published in Business Standard on 7th<\/sup> October 2023.<\/p>\n

UPSC Syllabus Topic<\/strong>: GS Paper 3, Economy, Changes in Industrial Policies<\/p>\n

News: <\/strong>China has made many strategic moves to dominate crucial sectors, like renewable energy.<\/p>\n

China capitalized on the global shift towards renewable energy and electric mobility. It amassed significant manufacturing capabilities to cater to global demand for solar panels, wind turbines, and EVs.<\/p>\n

How China gained dominance in major manufacturing segments?<\/strong><\/h2>\n

1)<\/strong> Foreseeing the rise of electric vehicles, Chinese firms invested in battery technology,<\/strong> achieving cost reductions that propelled EV sales.<\/p>\n

2)<\/strong> China built a robust manufacturing base<\/strong>, which now can supply a significant portion of global demand for solar panels, wind turbines, and EVs.<\/p>\n

3) <\/strong>This capacity also extends to critical materials and components<\/strong> necessary for these industries, underlining China’s manufacturing might. China secured access to essential raw materials like cobalt <\/strong>from Congo and lithium from Bolivia, critical for battery manufacturing, thereby further strengthening its position in the global EV market.<\/p>\n

4) <\/strong>The West, particularly the US and European countries, didn’t act timely<\/strong> to China’s rise in these sectors. Their focus was on the technological advancements in other areas like Silicon Valley, instead of the manufacturing sector.<\/p>\n

5) <\/strong>At the beginning of the century, Europeans countries themselves promoted China<\/strong> to fulfill their need for rooftop solar panels.<\/p>\n

What are the implications of China\u2019s dominance?<\/strong><\/h2>\n

First,<\/strong> China has acquired power to impose trade sanctions. For example, recent stoppage of supplies of gallium and germanium, critical for chip manufacture.<\/p>\n

Second,<\/strong> China tackles around 60 per cent of the wind turbine market. It also controls the market for active pharmaceutical ingredients (API), on which India\u2019s feted pharma industry depends.<\/p>\n

Third,<\/strong> Western countries are trying to replicate the Success story of China, but It will be difficult. China\u2019s success is based on the cutting-edge research in industries, the reduction of cost through free land, state-backed loans, and cheap electricity, population willingness to live with the ill-effects of highly polluting production facilities.<\/p>\n

Fourth,<\/strong> there is a global trend towards economic nationalism. Countries like the US, Europe, and India are now adopting protective measures and subsidies to bolster their domestic industries.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: This post is created based on the article \u2018How China grabbed pole\u2019, published in Business Standard on 7th October 2023. UPSC Syllabus Topic: GS Paper 3, Economy, Changes in Industrial Policies News: China has made many strategic moves to dominate crucial sectors, like renewable energy. China capitalized on the global shift towards renewable energy… Continue reading How China grabbed pole<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[10503,216,8184],"class_list":["post-263288","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-business-standard","tag-gs-paper-3","tag-indian-economy","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/263288","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=263288"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/263288\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=263288"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=263288"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=263288"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}