đ âWhy China Wonât Stop Producing â And What India Can Learn From Itâ
Imagine a workshop that never sleeps. Tools clinking, lights on 24x7, and output flowing non-stop â thatâs Chinaâs industrial base. Despite global slowdown, rising tariffs, and diplomatic pressure, Chinaâs production lines havenât paused â and thatâs not a coincidence.
Recently, Lu Feng, former advisor to Chinaâs State Planning Commission, gave a strong view: "China must not stop making things â it must meet global pressure head-on."
His argument?
Chinaâs industrial muscle â from basic goods like steel and cement to advanced tech like chips and AI â is its true currency of power, just like the US dollar is for America.
đ And hereâs the strategic logic:
Basic industries (steel, cement, chemicals) are not old-school relics â they are the foundation of urban expansion, job creation, and high-tech industries.
China still has 200 million rural citizens to urbanize. You canât do that with finance and AI alone â you need factories.
Manufacturing still accounts for 32% of Chinaâs output, showing no real decline in its commitment to physical goods.
đŻ Feng contrasts this with Americaâs mistake: replacing its factories with Wall Street. Result? An economy thatâs rich, but losing its ability to build.
This is what Princetonâs Kyle Chan calls âChinese Industrial Maximalismâ â not just making chips, but also making chairs, chemicals, and cheap electronics â all at once, all at scale.
đ What Does This Mean for India?
India now has a golden opportunity:
As global firms seek to de-risk from China, theyâre looking at India +1 strategies.
But India must resist the temptation to skip directly to âfancy tech.â First, we must strengthen our base: textiles, electronics, auto ancillaries, steel, chemicals.
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