Out-inventing China

When manholes started disappearing around the world in 2004, the world discovered China. Re-discovered, we should say, as, in the Chinese eyes, China was merely reasserting its historical manufacturing primacy after centuries of slumber. But, even in 2004, what it did was still just gruntwork at the bottom end of the world's value chain, jostling for space with Vietnam, Bangladesh and assorted sweatshop countries. Thereafter, came the phase of great copy-and-catch-up, to borrow Tyler Cowan's phrase, and cheap Chinese knock-offs flooded the global markets. The tabloids and governments razed about the poor quality of Chinese-made and pilferage of intellectual property. Yet, this outrage was reassuring, as China seemed far off from gaining any technological edge and forever consigned to fighting it out over the lower cost. 2019 changed all that. The message behind Trump's trade wars established that China, and its companies, may have achieved that technological ad...