Core Viewpoint - The article presents a paradox where China's manufacturing sector exhibits strong global competitiveness despite academic reports indicating its labor productivity is significantly lower than that of the United States. The author argues that the methodology used in these studies is flawed, leading to incorrect conclusions about China's labor productivity [1][15]. Methodological Issues - Traditional methods of measuring labor productivity through value-added calculations can obscure differences in product quality and types, leading to inaccurate comparisons between countries [2]. - The classification differences between U.S. and Chinese manufacturing statistics contribute to misleading productivity comparisons. U.S. statistics include companies that do not manufacture products, while China only includes actual manufacturers [3][4]. - The use of purchasing power parity (PPP) indices to compare value-added across countries may not accurately reflect price differences, complicating productivity assessments [5]. Industry Comparisons - The research focuses on five key industries: shipbuilding, steel, electric vehicles, solar photovoltaic components, and cement. It finds that Chinese workers' per capita output is 2 to 3 times that of their U.S. counterparts, while nominal value-added is about 20% lower due to price differences [7][8]. - In the cement industry, China's per capita output is slightly higher than that of the U.S., but its nominal value-added is only 28% of the U.S. level, primarily due to significant price disparities [8]. Labor Productivity Metrics - The analysis indicates that in shipbuilding, steel, and electric vehicles, China's labor productivity is superior when measured by physical output. For instance, in shipbuilding, China's per capita output is 2.5 times that of the U.S. [16]. - The average nominal wage for Chinese workers is significantly lower than that of U.S. workers, which is attributed to the overall lower wage levels in China rather than lower productivity [8][15]. Trade Barriers and Their Impact - Trade barriers, such as tariffs, inflate domestic prices in the U.S., leading to higher nominal value-added figures without necessarily improving labor productivity [9][11]. - The structural price differences between the U.S. and China further complicate productivity comparisons, particularly in industries like electric vehicles and pharmaceuticals [12][13]. Global Competitive Advantage - China's manufacturing sector is increasingly moving up the value chain, focusing on high-end manufacturing while outsourcing low-end production to countries with lower wages. This strategy enhances China's global competitiveness [17]. - The article suggests that the U.S. should focus on expanding its advantages in high-tech sectors rather than attempting to regain lost ground in general manufacturing, which may lead to adverse economic outcomes [17].