Economists Call It the 'China Miracle'
The U.S. used to be the world's manufacturing leader. But today, China is the undisputed king.
In fact, China's industrialization is unprecedented. The country's per capita income used to be one-third of sub-Saharan Africa's. But it only took a few decades to transform a poor agricultural economy into an industrial powerhouse.
After being mired in communist hell for generations, China began opening its economy toward the end of the 20th century. And it didn't take long for major corporations – like Nike – to outsource the production of their products to mainland China.
Also, with China's entry into the World Trade Organization in 2001, the country gained access to global markets. This solidified its role in international trade.
After China opened its economy to the world, there was an influx of foreign investment that was used to build factories and industrial infrastructure. And China heavily invested in its manufacturing...
In 2013, for example, China launched the Belt and Road Initiative, which is an international transport system of ports, highways, and railways. It enabled seamless transportation for China's goods around the world.
You see, China had the perfect set of conditions to become a manufacturing superpower...
The country has a cost advantage. For decades, China has been able to offer lower labor costs compared with other countries. And its vast population offers a large labor pool that can meet the demands of high-volume manufacturing.
China also has an abundance of raw materials like iron, timber, and aluminum. This allows it to keep unit costs lower than many of its competitors. Perhaps most important, China has access to rare earth elements.
Due to all these factors, China overtook the U.S. as the world's largest manufacturer in 2010. Today, China makes up 31.6% of the world's manufacturing output, while the U.S. only makes up 15.9%.
In the 1990s and early 2000s, China's manufacturing primarily focused on low-cost apparel, appliances, and textiles. But that has changed in recent years. China is now a global hub for manufacturing some of the most essential parts of our lives...
In 2023, smartphones, lithium-ion batteries, laptops, toys, and video-game consoles accounted for 27% of U.S. imports from China. And it doesn't stop there.
Shipping off so much of America's manufacturing capacity also means we don't produce many of our own medicines.
China does.
U.S. imports of Chinese pharmaceuticals nearly quintupled from $2.1 billion in 2020 to $10.3 billion just two years later.
Additionally, rare earth elements are critical in military applications and consumer electronics. We don't produce our own...
China does.
The country accounted for 70% of America's rare earth imports between 2020 and 2023.
We've also hollowed out our domestic steel and shipbuilding industries.
China, South Korea, and Japan do that now... Those countries currently build more than 90% of the world's tonnage of ships. The U.S. builds about 0.2%.
Lastly, we produce very few semiconductor chips, which are essential to our modern, connected way of life. Semiconductors run our cars, phones, televisions, hospitals, factories, and so much more. They are as vital to our economy as oil.
Most semiconductor production is now in Taiwan... right on China's doorstep.
The U.S. has put itself in a dangerous situation. We've lost control of many of our most critical economic inputs.
Right now, China could slam the door on exports to the U.S. – and we'd face a national crisis.
That's a precarious position to be in. And America should rush to escape from it.
Our top leaders and most influential people in our country are aware of this problem. They know we need to manufacture our own medicine... ships... semiconductor chips... and machinery.
As a result...
The U.S. is preparing to launch a manufacturing boom like nothing you've ever seen.
We're going to build new AI-focused data centers and drug-making facilities.
And we're going to build loads of new factories to produce cars, computer chips, and machinery.
You've likely heard of this trend before, "reshoring" – the move to bring manufacturing back home. Politicians and business leaders alike are seeing the case for this transition.
Reshoring is an unstoppable movement. And it's part of something bigger – what we're calling the "Mar-a-Lago Accord." In short, this is a move to drastically weaken the dollar... But the Mar-a-Lago Accord is also about rebuilding America's economic dominance from the ground up.
In my May issue of Retirement Millionaire, I recommended three stocks to take advantage of the reshoring movement. Subscribers can see them here. (Since then, the respective stocks are up 11%, 15%, and 20% – with more gains to come.)
I also have a host of other promising picks that will benefit from the Mar-a-Lago Accord. Subscribers can read all my Mar-a-Lago special reports here.
If you aren't a subscriber to Retirement Millionaire and want to learn more about the Mar-a-Lago Accord, click here to view my recent presentation.
What We're Reading...
- Something different: The Simpsons Movie returns for a sequel after two decades.
Here's to our health, wealth, and a great retirement,
Dr. David Eifrig and the Health & Wealth Bulletin Research Team
October 1, 2025