For the last several years, the annual threat assessment report by the Director of National Intelligence (DNI) has listed China as our scariest rival. They don't use the word "scary," but the takeaway is that no one can outcompete the U.S. on every level—economic, financial, soft power, and maybe even militarily (though not yet)—like China. On coveted green technologies like solar, wind and EV batteries, they have us beat in spades and everyone knows it. On May 14, Biden announced new import duties on China-sourced EVs and solar, for example, which begin August 1.

Here's how the DNI sees China, from their March 2024 report: "China has the capability to directly compete with the United States and U.S. allies and to alter the rules-based global order in ways that support Beijing's power and form of governance over that of the United States. China's serious demographic and economic challenges may make it an even more aggressive and unpredictable global actor."

How did China get there so fast?

American multinationals made China the world's go-to manufacturing hub for at least a generation. The trend was ramped up in December 2001 when China became a member of the World Trade Organization.

For those old enough to know Ross Perot and his "giant sucking sound" comment pre-NAFTA in 1992, his prediction came to fruition nine years later. MIT economists called it the China Shock.

In many ways, Wall Street is now helping to fund a China Shock 2.0. Big........

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