{"id":627425,"date":"2026-05-06T19:32:12","date_gmt":"2026-05-06T19:32:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/627425\/"},"modified":"2026-05-06T19:32:12","modified_gmt":"2026-05-06T19:32:12","slug":"china-now-produces-nearly-one-quarter-of-global-output-in-advanced-industries-new-itif-report-finds-press-releases-may-6-2026","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/627425\/","title":{"rendered":"China Now Produces Nearly One-Quarter of Global Output in Advanced Industries, New ITIF Report Finds | Press Releases | May 6, 2026"},"content":{"rendered":"

WASHINGTON\u2014China now produces nearly one-quarter of global output across the world\u2019s most advanced industries, extending its lead over the United States and other major economies, according to a new report<\/a> from the Information Technology and Innovation Foundation (ITIF).<\/p>\n

The Hamilton Index, 2026 finds that China is steadily gaining ground across high-value, innovation-driven sectors\u2014raising concerns about the erosion of Western industrial leadership and the long-term implications for economic strength, supply chains, and national security.<\/p>\n

\u201cChina is increasingly dominating the world\u2019s advanced industries, and its gains are coming at the expense of the United States and its traditional allies in the West,\u201d said Robert D. Atkinson, a senior fellow and founder of ITIF. \u201cIf current trends continue, this erosion of the West\u2019s industrial leadership will define future economic and military power.\u201d<\/p>\n

To assess U.S. and other nations\u2019 performance and global competitiveness, ITIF uses the latest OECD data on trade in value added to analyze countries\u2019 relative levels of industrial concentration and global market shares in 10 advanced industries, which it aggregates into the Hamilton Index of Advanced-Technology Performance. The 10 industries include information technology (IT) and information services; computers, electronics, and optical products; chemicals (not including pharmaceuticals); machinery and equipment; basic metals; motor vehicles; fabricated metals; pharmaceuticals; electrical equipment; and other transportation equipment.<\/p>\n

The new report is the latest update of ITIF\u2019s Hamilton Index, following the first edition in 2022 and the second in 2023. It is accompanied by three data visualization tools covering the entire dataset.<\/p>\n

\u201cSince 1995, China\u2019s share of global output in advanced industries has surged from 3.5 percent to nearly 25 percent,\u201d said Meghan Ostertag, who led the study. \u201cAcross all 10 industries, China\u2019s output has grown by at least 1,750 percent\u2014and more than 2,200 percent on average\u2014compared to roughly 200 percent growth in the United States.\u201d<\/p>\n

China\u2019s gains have been broad and sustained. It is now the world\u2019s leading producer in 7 of the 10 advanced industries ITIF tracked and has increased its market share at least threefold in every sector. In several core industries, including chemicals, machinery, and electrical equipment, China accounts for nearly a quarter of global output.<\/p>\n

China\u2019s dominance reflects not just the rapid growth of its overall economy but also the relative concentration of advanced industries as a share of its economy\u2014a standard analytical measure known as a \u201clocation quotient\u201d (LQ). ITIF\u2019s analysis shows China\u2019s economy performs 36 percent above the global average level of concentration in advanced industries (an LQ of 1.36), whereas the U.S. economy falls 12 percent below the global average (an LQ of 0.88).<\/p>\n

\"<\/p>\n

Among the report\u2019s other key country-level findings:<\/p>\n

Fifteen countries overperformed in the composite Hamilton Index in 2022, led by Taiwan with an LQ of 2.63, driven largely by its semiconductor strength in computers and electronics.South Korea ranked second overall with an LQ of 2.17, reflecting strong specialization across multiple advanced industries, including electronics, vehicles, and machinery.Vietnam ranked third with an LQ of 1.82, standing out among developing nations due to rapid growth in computers and electronics manufacturing.Vietnam saw the largest increase in LQ from 2013 to 2022, rising 44 percentage points, followed by Taiwan and Israel.Several emerging economies\u2014including Poland, Mexico, and Turkey\u2014posted moderate gains, while the United States, Canada, and Japan experienced declines in relative performance.To reach an LQ of 1, U.S. advanced industry output would have needed to be $370 billion higher in 2022\u2014a 14 percent increase.Although China\u2019s LQ declined over the past decade, its output continued to grow rapidly, outpacing the United States, OECD, and global average.China now accounts for 24.9 percent of global advanced industry output, compared to 22.3 percent for the United States.<\/p>\n

China\u2019s growth reflects a long-term industrial strategy. Since 2018, its advanced industry output has grown more than 26 percent, compared to 15.6 percent globally. Excluding IT services\u2014where the United States remains strongest\u2014the rest of the world grew just 11.4 percent, underscoring China\u2019s dominance in manufacturing-intensive sectors.<\/p>\n

\"<\/p>\n

The gap with the United States is widening. Outside of IT and information services, other transportation, and pharmaceuticals, China holds a larger global market share in every advanced industry. In sectors such as basic metals and machinery, China\u2019s output has grown several times faster than America\u2019s.<\/p>\n

The scale of the gap is substantial. To match China\u2019s level of industrial intensity, the United States would have needed to increase advanced industry output by nearly $1.5 trillion in 2022 alone\u2014a 56 percent increase. That would require nearly doubling IT services output, quadrupling computers and electronics production, or increasing pharmaceutical output sixfold.<\/p>\n

China\u2019s rise has coincided with a sharp decline in the OECD\u2019s industrial position. The bloc\u2019s share of global advanced industry output fell from 86 percent in 1995 to 58 percent in 2022\u2014a 28 percentage-point drop. Losses were especially pronounced in basic metals and electrical equipment, where market share fell by more than 40 percentage points.<\/p>\n

At the same time, advanced industry production is shifting toward the developing world. Non-OECD countries increased their global market share by more than 28 percentage points since 1995, although most of that growth came from China. Excluding China, their share still rose nearly 7 percentage points, driven by gains in heavy manufacturing and electronics.<\/p>\n

Industry-level highlights:<\/p>\n

China leads in 7 of the 10 advanced industries and dominates global production in manufacturing-intensive sectors.The United States leads in IT and information services with 36.1 percent of global output, while Israel is the top relative performer with an LQ above 3.In computers and electronics, China holds 24.9 percent of global output, while Taiwan is the top relative performer with an LQ of 12.88.In chemicals, China leads in absolute output, accounting for more than 28 percent of global market share, while South Korea is the top relative performer.In machinery and equipment, China holds over one-third of global output, while Japan and Germany lead in relative specialization.In basic metals, China controls more than 40 percent of global output, making it the dominant global producer by a wide margin.In motor vehicles, China leads globally, driven in part by rapid growth in electric vehicles, while Mexico is the top relative performer.In fabricated metals, China leads in output, while countries such as Indonesia show strong relative specialization.In pharmaceuticals, the United States remains the global leader, while Switzerland is the top relative performer by a wide margin.In electrical equipment, China accounts for nearly 40 percent of global output, far ahead of other nations, while South Korea leads in relative performance.In other transportation, the United States leads by a wide margin, controlling 37.6 percent of global market share, while Taiwan leads in relative performance with an LQ of 2.87.<\/p>\n

For the United States and its allies, the implications are clear: This is not just about trade. It is about losing ground in the industries that underpin innovation, economic strength, and national security. Without a coordinated strategy to scale advanced industry production, the gap with China will continue to grow.<\/p>\n

Contact: Sydney Mack, [email\u00a0protected]<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"WASHINGTON\u2014China now produces nearly one-quarter of global output across the world\u2019s most advanced industries, extending its lead over…\n","protected":false},"author":2,"featured_media":627426,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[23,3,21,19,22,20,25,24],"class_list":["post-627425","post","type-post","status-publish","format-standard","has-post-thumbnail","category-united-states","tag-america","tag-news","tag-united-states","tag-united-states-of-america","tag-unitedstates","tag-unitedstatesofamerica","tag-us","tag-usa"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/627425","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=627425"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/627425\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/627426"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=627425"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=627425"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=627425"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}