Solutions with Henry Blodget China Is Winning. How Can the U.S. Catch Up?
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Feb 23, 2026 Steven Rattner, investor and former Treasury counselor who led the 2008–09 auto rescue, shares views on U.S.–China competition. He discusses China’s rapid gains in biotech, AI, and EV manufacturing. Rattner lays out ideas for a coherent industrial policy, a national development corporation, streamlined permitting, stronger executive action, and rebuilding America’s engineering ecosystem.
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Xiaomi Factory Visit Changed His View Of Chinese EVs
- Steven Rattner recounts touring a Xiaomi factory and seeing EV designs and interiors that rival premium European cars.
- He describes a yellow sports car that could have been a Porsche and an interior full of advanced technology.
State Directed Capitalism Drives Chinese Scale
- China uses state-directed capitalism: mass-producing engineers, factories, and suppliers to dominate targeted industries like EVs.
- Rattner points out China has ~50 EV makers and will consolidate after rapid government-driven scaling.
Stand Up A Depoliticized Industrial Development Corporation
- Create a depoliticized national industrial development corporation to invest long-term in strategic industries.
- Rattner cites the CHIPS Act and the 2009 auto rescue as models for focused, less-bureaucratic capital deployment.
