1. Introduction:

 Over the past 30 years, China has surged ahead in global economic rankings, transforming from a developing country into a manufacturing, technology, and infrastructure powerhouse. By contrast, while maintaining global influence, the United States has prioritised military spending and financial markets over domestic industrial development. This essay explores why China has risen to first place in many areas of economic development and what critical lessons the United States, Canada, and the Caribbean—especially Black communities—can learn, particularly regarding investment in Technical Vocational Education and Training (TVET), infrastructure, and manufacturing.

2. China’s Focus on Building, Not Bombs:

China’s success lies in its long-term investment strategy focused on building infrastructure, developing human capital, and expanding manufacturing. Rather than diverting national wealth into military conflicts, China prioritised economic development. In contrast, over the past 30 years, the United States engaged in 13 wars, spending approximately $14.2 trillion on military interventions. This represents a massive opportunity cost. Instead of building bridges, roads, schools, and factories, the U.S. invested in warfare abroad.

Consider what could have been achieved if even a fraction of that $14.2 trillion had been invested in revitalising America’s manufacturing sector or in TVET systems. Imagine a robust industrial base in the Midwest, where white-collar and blue-collar workers benefit from high-tech skills and stable jobs. Instead, America enriched Wall Street and Silicon Valley but neglected its broader working population.

3. Technical Vocational Education and Training (TVET):

The Key to Economic Resilience: China has developed the world’s most extensive vocational education system. As of 2024, China operates over 21,700 vocational institutions with more than 36 million students enrolled in TVET programs. These programs equip workers with practical skills in advanced manufacturing, information technology, green energy, and infrastructure development. This focus on skills has allowed China to move from low-cost manufacturing to high-tech production.

By contrast, the United States underinvested in vocational training. While high-tech firms like IBM, Cisco, and Microsoft thrived, generating massive profits—more than the combined profits of China’s four largest banks—these profits did not translate into reinvestment in domestic skills or infrastructure. Instead, the focus remained on Wall Street.

4. The Financialization Trap: Where Did the Money Go?

 Over the past three decades, U.S. corporations generated enormous profits. However, rather than reinvesting these earnings into the American economy, much of the wealth went into stock buybacks, executive bonuses, yachts, jets, and luxury assets. Jack Ma, founder of Alibaba, highlighted this discrepancy, noting that while American corporations accumulated obscene wealth, very little was channeled back into industrial development or the workforce. The 2008 financial crisis underscored this vulnerability. When Wall Street’s speculative bubble burst, it wiped out $19.2 trillion globally and led to 34 million job losses. Corporate strategies prioritised shareholder value at the expense of national economic resilience.

5. The Manufacturing Shift:

An American Idea It is a myth that China “stole” American jobs. U.S. corporate strategy offshored manufacturing to China to cut costs and increase profits. This hollowed out America’s industrial heartlands, leading to job losses and growing inequality. China capitalised on this, using manufacturing to build capacity, skills, and infrastructure.

Jack Ma noted that the United States wanted to control technology and intellectual property (IP) while outsourcing labour-intensive manufacturing to China. This shortsighted strategy benefited corporate elites but left America’s working class behind.

6. Implications for Canada and the Caribbean, Especially Black Communities.

 If Canada and the Caribbean, particularly Black communities, do not prioritise TVET and infrastructure investment, they risk falling further behind in global competitiveness. Black Canadians face systemic barriers in accessing high-quality education and employment opportunities. Without focused investments in TVET, these communities will continue to experience high unemployment and limited access to emerging industries like green energy, digital technology, and advanced manufacturing. The Caribbean, heavily reliant on tourism and remittances, faces similar risks. Without a strong TVET system, the region remains vulnerable to economic shocks. Diversifying into sectors such as renewable energy, agro-processing, and digital services requires a skilled workforce, which TVET can provide.

7. Infrastructure and Industrial Policy:

The Chinese Model: China’s government plays an active role in industrial policy. From high-speed rail networks to renewable energy, China invests in large-scale infrastructure projects that create jobs and boost productivity. The United States, Canada, and the Caribbean have underinvested in infrastructure, leaving roads, bridges, and energy grids outdated.

Redirecting funds toward infrastructure and TVET can revitalise industries, reduce unemployment, and increase global competitiveness. For Black Canada and the Caribbean, these investments are crucial to breaking cycles of poverty and marginalisation.

What the U.S., Canada, and the Caribbean Can Learn: Five Key Lessons from China

1. Invest in TVET: Build world-class vocational training systems to equip workers with modern economic skills.
2. Prioritise Infrastructure: Redirect funds toward infrastructure projects that benefit domestic productivity.
3. Rebalance Financialization: Encourage corporations to reinvest profits in the real economy.
4. Developing Industrial Policy: Support sectors like green energy, advanced manufacturing, and technology.
5. Support Regional Development: Focus on revitalising marginalised regions and communities, especially Black Canadians and Caribbean populations.

8. Final thoughts:

 China’s rise is no accident; it results from deliberate policy choices focused on long-term development, infrastructure, and skills training. The U.S., Canada, and the Caribbean must learn from this approach. By investing in TVET, infrastructure, and industrial capacity—particularly for Black Canadians and Caribbean communities—these nations can create sustainable jobs, enhance economic resilience, and foster inclusive growth.

References

1. International Labour Organisation. (2023). Skills development in China: Advancing TVET to meet labour market demands. https://www.ilo.org
2. World Bank. (2024). China economic update: Infrastructure, skills, and growth strategies. https://www.worldbank.org
3. National Bureau of Statistics of China. (2024). Annual statistical yearbook: Education and workforce data. https://www.stats.gov.cn
4. Congressional Budget Office. (2023). The budgetary effects of U.S. military operations from 2001 to 2023. https://www.cbo.gov
5. Ma, J. (2023). Reflections on global trade, technology, and the future of work [Speech transcript]. Alibaba Group.
6. Economic Policy Institute. (2023). The erosion of American manufacturing: Causes and consequences. https://www.epi.org
7. Harvard Business Review. (2022). The financialization of the American economy: What went wrong? https://hbr.org
8. UNESCO-UNEVOC. (2023). Technical and vocational education and training (TVET) country profiles: China, U.S., Canada, and the Caribbean. https://unevoc.unesco.org
9. Stiglitz, J. E. (2022). Rewriting the rules of the American economy: An agenda for growth and shared prosperity. W. W. Norton & Company.
10. Institute for Infrastructure Studies. (2023). The state of U.S., Canadian, and Caribbean infrastructure and future investment needs. https://www.infrastructureusa.org