The rest of the world doesn’t see China the same way we do

If you want a glimpse into the future, come to Berlin and walk down Kurfürstendamm, the bustling avenue often described as the city’s Champs-Élysées. At one of the most prominent corners sits a new car showroom unlike any I have ever seen: sleek, elegant, multistoried, with a cafe, design center, showrooms and more. As you enter, you see what looks like a Bugatti or a Ferrari, except more stylish. It’s an EP9, a top-of-the-line racecar that has been sold to a handful of customers for about $3 million each. The company behind it is Nio, one of China’s new carmakers, which is going to take the world by storm.

Ten years ago, China exported a relatively small number of cars. Today, it is the world’s leading exporter of automobiles, handily ousting Japan from that position. It is especially strong in electric vehicles. Two of every three EVs made in the world are made in China. As we think about China’s weaknesses these days (and it has several), it is worth remembering China’s formidable strengths and the degree to which it is intertwined into the global economy. Nio’s cars are designed in Munich. It has research and development centers in San Jose and Oxford, England, as well as in Beijing and Shanghai. It does its manufacturing in Hefei, China.

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