The United States has been imposing tariffs on China in a crazy manner, with President Trump claiming this would bring manufacturing back to America. But can American industries truly break free from "Made in China"?
According to an April 23 report by The New York Times, the U.S. once dominated the global market for personal protective equipment (PPE), now, with the flood of Chinese medical supplies, over 90% of the medical gear used by American healthcare workers is made in China. As one U.S. medical equipment executive bluntly put it: even with a 100 percent tariff, the Chinese masks is still going to be cheaper than the American-made masks.
The report highlights that few American industries have been hit as hard by cheap Chinese imports as manufacturers of masks, exam gloves, and other disposable medical gear. The sector’s decline had led to catastrophic consequences during the COVID-19 pandemic. When China temporarily halted exports, American healthcare workers found themselves defenseless as the deadly airborne virus rapidly filled up emergency rooms and morgues.
Now, with Trump announcing a new round of tariffs this month and China retaliating with an 84% tariff on U.S. imports, the handful of American PPE manufacturers left felt mostly unease.
Lloyd Armbrust, CEO of Armbrust American, a Texas-based N95 mask producer, admitted, "I’m pretty freaked out. On one hand, this is the kind of medicine we need if we really are going to be independent of China. On the other hand, this is not responsible industrial policy."
The U.S. once led the world in PPE, inventing the N95 mask and disposable gloves. Yet today, over 90% of the medical equipment worn by American healthcare staff is produced in China.
During the first year of the pandemic, more than 100 new American medical supply companies sprang up. Five years later, nearly all have vanished. As the pandemic receded, demand for PPE fell. For many Americans, masks became a symbol of government overreach and loss of freedom. Chinese products then returned to the market.
Despite bipartisan vows to end reliance on foreign medical supplies and support the dozens of domestic manufacturers that emerged during the pandemic, federal agencies have reverted to buying inexpensive Chinese imports. Industry experts warn that, with the ongoing measles outbreak, avian flu threats, and the trade war with China, renewed dependence on imported medical products is especially concerning.
According to the American Medical Manufacturers Association, of the 107 companies founded during the pandemic, only five still produce masks and gloves.
Eric Axel, the association’s executive director, says that maintaining high tariffs on Chinese PPE would give U.S. manufacturers an edge: "I think it will change behavior, because people will have to adjust to the reality that you can’t buy below-market price rate stuff from China anymore."
Other industry leaders fear that an escalating U.S.-China trade war could disrupt supply chains and trigger fresh PPE shortages. Tariff policies also breed economic uncertainty, stifling new investment. Scott McGurl, a healthcare industry expert at consulting firm Grant Thornton, notes, "It’s difficult to make business decisions when policies change every four years, and now every couple of days."
Mike Bowen, now-retired but still a shareholder of Prestige Ameritech, one of the few pre-pandemic American mask makers, said the collapse of the U.S. PPE industry in recent years was entirely predictable. He had repeatedly warned Congress about the risks of relying on foreign-made PPE, but no lessons were learned.
Earlier, when California bought millions of N95 masks for residents affected by the Los Angeles wildfires, they chose Chinese products.
Some American medical equipment manufacturers believe that what’s needed now is legislation and policy mandates to push government agencies and hospitals to buy American-made masks and gloves.
Yet, as Armbrust American’s Lloyd Armbrust points out: "Even with a 100% tariff, the Chinese mask that sells for a penny is still going to be cheaper than an American-made mask selling for eight cents."
Deep Throat
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Former Google CEO Eric Schmidt recently sounded the alarm in The New York Times: China is not just catching up in artificial intelligence and technology innovation, it is, in some areas, pulling ahead. Despite US efforts to curb China’s progress through export controls on advanced AI chips, Schmidt argues these moves have only fuelled China’s determination to cultivate talent, build resilient supply chains, and accelerate homegrown innovation.
Schmidt points to a new era: “From DeepSeek to Temu to TikTok, Chinese tech is starting to pull ahead.” The era when China trailed far behind the US is over. American restrictions have, paradoxically, pushed China to double down, producing world-class products and, at times, even leapfrogging the West.
Google Former CEO Eric Schmidt argues in a commentary that China is rapidly catching up to the United States in artificial intelligence and technological innovation. (Image source: X)
A Changed Landscape: From Copycat to Contender
Schmidt’s commentary highlights how technological advances are transforming daily life in China. Electric vehicles speed through city streets; apps offer drone food delivery; and humanoid robots from Unitree Technology have become household names after performing on the Spring Festival Gala, China’s most-watched TV program. These shifts underscore China’s emergence as a peer-and sometimes a leader in fields like AI, robotics, and electric vehicles.
Humanoid robots from Unitree Technology became an overnight sensation after performing a dance and handkerchief-spinning routine on the stage of the Spring Festival Gala.
Schmidt notes, “To win the race for the future of technology, and, by extension, global leadership, the US must discard the belief that it is always ahead.” For years, China lagged behind. In 2007, when Steve Jobs unveiled the first iPhone, only about 10% of China’s population was online, and Alibaba was still years away from its New York IPO. But the pace of change has been staggering. In just over a decade, China has transformed from imitator to innovator, with products that sometimes outpace their Western counterparts.
AI: From Playing Catch-Up to Setting the Pace
When ChatGPT launched in late 2022, a wave of Chinese copycats followed, widely seen as years behind their American rivals. Yet, as with smartphones and EVs, Silicon Valley underestimated China’s capacity to rapidly develop affordable, state-of-the-art alternatives. Today, Chinese AI models are closing the gap. DeepSeek’s V3 large language model, updated in March, now ranks among the world’s best non-reasoning models on some benchmarks.
Schmidt observes, “In a dozen years, China has gone from a copycat nation to a juggernaut with world-class products that have at times leapfrogged those in the West.”
Manufacturing, Robots, and Open AI
Schmidt cites Xiaomi as a case in point: once dismissed as an iPhone copycat, the company delivered 135,000 electric vehicles last year. Meanwhile, Apple abandoned its own EV project after pouring in $10 billion over a decade. China is also racing to deploy robots at scale. In 2023, it installed more industrial robots than all other countries combined and has ambitious plans for mass-producing humanoids.
A key difference is openness. Leading US tech firms develop proprietary AI models and charge for access, partly because training these models costs hundreds of millions of dollars. Chinese AI companies, by contrast, often distribute their models freely for public use, download, and modification. This approach broadens their global influence and makes their technology more accessible to researchers and developers everywhere.
Schmidt’s New York Times op-ed headlined: “DeepSeek. Temu. TikTok. China Tech Is Starting to Pull Ahead.”
The Roots of China’s Tech Momentum
China’s rise is underpinned by decades of investment in STEM education, robust supply chains, and a brutally competitive domestic market that rewards relentless iteration. Apps from Chinese e-commerce giants like Shein and Temu, along with social platforms like RedNote and TikTok, are among the world’s most downloaded. Combined with the popularity of open-source Chinese AI models, it’s easy to envision a future where Chinese apps and AI companions are woven into the fabric of daily life worldwide.
Schmidt warns, “This China-dominated future is already arriving, unless we get our act together.” He urges the US to learn from China’s strengths: sharing more AI technology and research, accelerating innovation, and promoting AI adoption across the economy. He also cautions against underestimating China’s willingness to endure short-term economic pain for long-term technological supremacy.
Sanctions: Fuel for Innovation?
Despite US restrictions on advanced chip exports, China’s recent breakthroughs suggest that sanctions have only spurred local entrepreneurs to train and commercialize AI with renewed vigor. Schmidt concedes, “It’s a hard truth to swallow, but Chinese tech has become better despite constraints, as Chinese entrepreneurs have found creative ways to do more with less.”
The End of US Tech Dominance?
Schmidt closes with a stark warning: “We’re no longer in the era when China is far behind us.” If China’s ability to innovate holds, if its AI companies remain open, and if the country stays on track to claim 45% of global manufacturing by 2030, the next phase of the AI race will be a no-holds-barred contest across every front. America will need every advantage it can muster.
