How the U.S. and China Compete in Planes, EVs, Chips and More | WSJ U.S. vs. China
The Wall Street Journal・2 minutes read
China's Comac aims to challenge Boeing's dominance in the aviation industry, facing challenges in technology, industry standards, and geopolitical tensions with the U.S. In the semiconductor industry, China trails the U.S but invests heavily to become self-reliant, using advanced chip technology with faster performance than leading brands like Nvidia.
Insights
- China aims to challenge Boeing's dominance in the aviation industry with the development of the Comac C919, backed by significant government aid, but faces challenges in conforming to industry standards, establishing support systems, and securing advanced components due to intellectual property concerns.
- The competition between Byd and Tesla in the global EV market underscores the importance of battery production, market positioning, and manufacturing strategies, with Byd's vertical integration providing stability in the supply chain compared to Tesla's reliance on external suppliers.
- The U.S and China are heavily investing in semiconductor research and manufacturing, with both countries using seven-nanometer transistors in high-end chips, but China's chips outperform Nvidia's A100 chip, showcasing the race for dominance in the semiconductor industry.
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Recent questions
What is the significance of the Comac C919?
The Comac C919 is China's first homegrown narrow-body jet developed to compete with Western giants like Boeing's 737 Max 8, aiming to dominate the global airspace. It represents China's efforts to reduce reliance on Western jetliners and challenge Boeing's dominance in the aviation industry.
How does Byd differ from Tesla in the EV market?
Byd, a Chinese EV maker, has rapidly grown in the Chinese market, surpassing Tesla in sales volume, with a focus on offering a range of electric and plug-in hybrid options at competitive prices. Byd's vertical integration, including battery production, gives it stability in the supply chain, contrasting with Tesla's reliance on external suppliers for batteries.
What challenges does Comac face in the aviation industry?
Comac faces challenges in conforming to industry standards, establishing a global support system for operators, and securing advanced components due to concerns over intellectual property. Geopolitical tensions, including accusations of technology theft, have posed challenges for Comac, impacting access to American technology and funding.
How does the U.S semiconductor industry compare to China's?
The U.S has been a pioneer in the semiconductor industry for over 70 years, giving birth to the semiconductor industry and economy. China has long trailed the U.S in chip technology, relying on American and other foreign companies for chip production. Both American and Chinese chip companies use seven-nanometer transistors in their high-end chips for improved performance.
What challenges are faced in developing high-speed rail in the U.S?
Challenges faced by the U.S in developing high-speed rail include difficulties adapting foreign designs, funding shortages, and inconsistent support. Despite past dominance of railroads in interstate transportation, the U.S has been slow in developing high-speed rail, shifting to highways in the mid-20th century. Public and political support are crucial for driving the growth of high-speed rail in the U.S.
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