For years, the conventional wisdom held that the United States retained a decisive lead over China in the technologies and industries that will define the 21st century. The 2025 report of the US–China Economic and Security Review Commission to Congress challenges that view, and its conclusions make for sobering reading.

Ahead of the Trump–Xi summit where trade and technology are on the table, the Commission finds that China has not only caught up with but in multiple sectors now leads advanced economies including the United States. From electric vehicles and solar panels to quantum computing pathways and pharmaceutical supply chains, Beijing’s combination of state direction, entrepreneurial competition, and sustained investment has produced results that Western policymakers are only beginning to reckon with.

In this episode, the Lowy Institute's Richard McGregor speaks with Randy Schriver and Mike Kuiken — vice-chairs of the Commission — about what their report found and what it means. They discuss China’s model of directed innovation, the case for a consolidated US economic statecraft entity, the multiple “choke points” China now holds over industrialised economies, and what sustained engagement in the Pacific, including by Australia, must look like to be effective. They also assess the military situation around Taiwan and the second-order implications of the ongoing conflict with Iran.

Randy Schriver served as Assistant Secretary of Defense for Indo-Pacific Security Affairs in the first Trump administration. Mike Kuiken is a Distinguished Visiting Fellow at Stanford University’s Hoover Institution and a former senior adviser to Senate Majority Leader Chuck Schumer.

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