Is China competing—or executing a long-term strategy to dominate global industry?
In this episode of The China Desk, legendary CEO advisor Ram Charan joins Steve Yates to break down his book China’s 90% Model: China Has America by the Throat — Here’s How to Fight Back and Win. Charan argues that China’s strategy is deliberate: build capacity to meet 90% of global demand, sell below marginal cost, subsidize exports, and destroy competitors across entire industries.
Drawing on six decades advising global executives—including more than 50 Chinese companies—Charan explains how this model has hollowed out American manufacturing in sectors like solar, pharmaceuticals, chemicals, and advanced materials. He describes why many CEOs understand the threat privately but hesitate to speak publicly, and why investors may be underestimating long-term risk.
The conversation explores:
How industrial dominance becomes national security leverage
Why excess capacity and currency policy matter
The strategic risk of supply chain choke points like magnets and critical inputs
The need for a cabinet-level Department of Manufacturing and Technology
Why economic security and national security are now inseparableCharan argues that America and its allies still possess overwhelming economic strength—but only if they coordinate industrial policy, rebuild manufacturing capacity, and communicate the stakes clearly to the public and business leaders alike.
This is a high-level strategic conversation about economic warfare, industrial capacity, and what the next seven years could determine for the global balance of power.
00:00 — Introduction and Ram Charan’s background
02:40 — What is China’s 90% Model?
04:19 — Industrial dominance and strategic execution
05:18 — The origins of China’s long-term strategy
08:19 — How to measure industry capture and market share
12:06 — Why CEOs stay silent and investor blind spots
14:11 — The October wake-up moment
16:22 — When companies must exit China
18:26 — Building an allied industrial coalition
21:44 — Economic security equals national security
23:17 — War-time leverage and supply chain choke points
25:21 — Proposal: Department of Manufacturing and Technology
27:35 — Seven-year strategy and public awareness
30:27 — Where to find the book and follow Ram Charan
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