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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Summary

00:00

China's Comac C919 Challenges Boeing's Dominance

  • China's first homegrown narrow-body jet, the Comac C919, is being developed to compete with Western giants like Boeing's 737 Max 8, aiming to dominate the global airspace.
  • Boeing, with over 100 years of experience, has been a key player in China's aviation industry, with significant sales numbers and a strong presence in the country.
  • Comac, established in 2008 with government aid estimated between $49-72 billion, aims to reduce reliance on Western jetliners and challenge Boeing's dominance.
  • Both the C919 and 737 Max 8 use engines from CFM, a joint venture between General Electric and Safran, but Boeing's established relationships with suppliers give it an edge in technology.
  • Geopolitical tensions, including accusations of technology theft, have posed challenges for Comac, with the U.S. adding it to a blacklist, impacting access to American technology and funding.
  • 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.
  • 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.
  • Tesla, known for its premium all-electric vehicles, has faced challenges in the Chinese market, including price cuts and the need to adapt to changing subsidy policies.
  • The global EV market competition between Byd and Tesla highlights the importance of battery production, market positioning, and manufacturing strategies in dominating the industry.

15:36

Semiconductor Industry: US vs China Growth Battle

  • The U.S has been a pioneer in the semiconductor industry for over 70 years, giving birth to the semiconductor industry and economy.
  • American scientists invented the first transistor in the late 1940s, leading to the development of early chips used in computers and NASA space programs.
  • The semiconductor industry boomed in the 1960s due to rising demand for consumer goods, with Taiwan Semiconductor Manufacturing Company now leading the industry.
  • China has long trailed the U.S in chip technology, relying on American and other foreign companies for chip production.
  • China aims to become self-reliant in chip production, investing $180 billion in state funding to support its domestic chip industry.
  • Both American and Chinese chip companies use seven-nanometer transistors in their high-end chips for improved performance.
  • American chips have over 54 billion transistors in about 800 square millimeters, while Chinese chips have about 77 billion transistors in 1,000 square millimeters.
  • China's chip can perform over one thousand trillion operations per second, three times faster than Nvidia's A100 chip.
  • Semiconductor manufacturing is complex, requiring precise lithography processes, with both Nvidia and Chinese chip companies relying on Taiwan Semiconductor Manufacturing Company for production.
  • The U.S and China are investing heavily in semiconductor research and manufacturing, with the U.S allocating $52 billion for chip research and manufacturing, while China aims to increase its domestic chip production.

31:33

Challenges and Innovations in U.S Battery Production

  • Panasonic faced challenges in shifting battery production to the U.S due to different safety regulations and operating conditions.
  • Training workers for battery production was crucial due to the process's sensitivity to errors.
  • Tesla and Panasonic's joint battery business turned profitable after years of losses, becoming a model for other automakers.
  • Establishing EV battery factories in the U.S takes longer than anticipated, especially in the earlier supply chain stages.
  • China leads in producing battery components, while the U.S lags behind due to specific chemical processing requirements.
  • U.S automakers are reconsidering battery choices, shifting towards lfp batteries due to volatile mineral prices.
  • Recycling batteries for materials like lithium, nickel, and cobalt is a promising avenue for U.S battery material supply.
  • Ascend Elements focuses on recycling batteries to produce cathode materials with a smaller carbon footprint.
  • The U.S aims to enhance its domestic battery supply chain for security and independence from other countries.
  • The U.S supercomputer, Frontier, is the world's fastest, capable of one quintillion calculations per second, aiding in scientific research and advancements.

47:02

"Contrasting High-Speed Rail Development in China and US"

  • High-speed rail tolerance in China is precise, requiring specific design for tracks and overhead wires to accommodate higher speeds.
  • Chinese high-speed rail stations are located in suburban and rural areas, unlike the U.S where they are primarily in urban centers like New York City, Boston, and Washington DC.
  • High-speed rail lines are strategically placed between city pairs with a minimum of three million people on each side and a distance of 200-500 miles for optimal speed.
  • The U.S has been slow in developing high-speed rail despite past dominance of railroads in interstate transportation, shifting to highways in the mid-20th century.
  • China's high-speed rail success is attributed to consistent government backing, significant investments, and partnerships with foreign firms for technology transfer.
  • China's CRRC, now a leading train manufacturer globally, emerged from partnerships with foreign companies and subsequent innovations.
  • Challenges faced by the U.S in developing high-speed rail include difficulties adapting foreign designs, funding shortages, and inconsistent support.
  • The U.S is experiencing a similar resistance to high-speed rail as Europe did in the 1970s, requiring public and political support to drive its growth.
  • Chinese and American tech firms are investing in the metaverse industry, with differences in regulations impacting user experiences and platform development.
  • China's strict regulations on digital payments and cryptocurrencies may influence the development and user experience of its metaverse platforms compared to the U.S.

01:03:10

"Next-gen telescopes revolutionize space exploration"

  • NASA's Hubble telescope has been a dominant force in space exploration since 1990, but the recent launch of the James Webb Space Telescope (JWST) marks a new era. Both telescopes focus on detailed observations of specific areas in the sky rather than scanning broadly.
  • The race to develop the next generation of telescopes includes survey telescopes like NASA's Nancy Grace Roman and China's Shuntan, designed to study Dark Energy, a mysterious force believed to drive the universe's expansion. While Roman has a larger mirror for detailed images, Shuntan's wider field of view allows it to capture more sky during its mission.
  • The success of these telescopes hinges on their sensor modules, which process captured light into images. NASA's experience in sensor technology gives it an edge over China's space agency. Roman's distant orbit allows for continuous data collection, while Shuntan's proximity to Earth enables potential repairs and upgrades, with a launch date advantage in 2023.
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