https://aakash.substack.com/p/why-jet-engines-arent-made-in-china
One illustrative example of failure is in jet engines. China has tried and failed for some fifty years to produce military and commercial jet engines at parity with the West. Why did it fail? Because, as I explore below, jet engines are almost uniquely designed to expose the weaknesses in the Chinese system. They’re a low-margin market focused on long-term reliability where manufacturing quality and consistency are paramount. Iteration speed is very slow and there’s a pervasive, internationally enforced, regulatory barrier for every finished product. These together neutralize the usual Chinese advantages in skilled labor, capital, and speed-to-scale. They also prevent traditional domestic protectionism from adding much value.
Analyzing the Chinese failure to produce viable jet engines gives us important lessons about the nature of the West’s remaining comparative advantage.
