What if the US wants to be the new China?

Posted March 06, 2020 11:05:51The US should consider the possibility of becoming the next China, if it wants to retain its leadership position in the global economy, according to a top economic adviser to President Donald Trump.

Former Goldman Sachs executive Jeffrey Immelt said the US should be prepared to become a global manufacturing powerhouse and that the country would be better placed to handle globalisation.

“We have a tremendous opportunity,” Immelt told reporters during a briefing on Thursday.

“If we can’t become the manufacturing powerhouse, then we are in a very bad position to be in a global economy.”

Immelt said it would be a “massive and difficult” challenge for China to maintain its lead in the US manufacturing sector and was unlikely to happen in the next decade.

“It’s going to be a very difficult path,” Immel said.

“It’s hard to be an Asian manufacturing giant in a world where China is in charge.”

Immel said the world was now in the midst of an unprecedented shift in global manufacturing.

“We have moved from the manufacturing hub to the distribution hub,” Immelman said.

“I think there’s a great deal of hope in China.”

The economic advisor, who is a director at the US National Economic Council, said the manufacturing sector was set to be responsible for 40 per cent of the US gross domestic product in 2020, up from 33 per cent in 2025.

Immelt also said that the United States could be the most competitive and dynamic economy in the world if it could maintain its “very strong” economy.

“The US has had its problems, but it’s the best place to be for the long run,” he said.

Immel was responding to questions from Reuters about the US’s ability to retain global leadership in the 21st century.

The US is one of the world’s largest economies, but with the world economy now dominated by China, the US faces an economic challenge.

The economy has grown by just 3 per cent over the past five years, and has been in a recession since the end of 2015.

The Dow Jones industrial average and S&P 500 have both declined in recent months.

The outlook for the US economy has been roiled by concerns about the impact of the global financial crisis, and by the Trump administration’s decision to pull out of the Paris climate agreement.

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