Chapter Sixteen
The Global Battle for Industrial Dominance: China, America, and Europe in the 21st Century
Srini Sitaraman
The greatest danger in times of turbulence is not the turbulence; it is to act with yesterday’s logic.
– Peter Drucker, Managing in Turbulent Times, 1980
Abstract
The resurgence of industrial policy is reshaping the global economic landscape. Driven by geopolitical competition, technological disruption, and the need for national resilience, countries are adopting diverse strategies to secure their economic futures. This chapter examines the evolving industrial policies of China, the United States, and Europe, highlighting their distinct approaches and the implications for global trade, innovation, and technological leadership. From China’s state-led model to the U.S. focus on targeted investments and Europe’s “de-risking” strategy, the competition for industrial dominance is intensifying. The chapter also explores the role of international collaborations, such as the Quad and AUKUS, in shaping a new era of industrial policy.
