If AGI is concentrated in a few US companies, other nations could lose their economic sovereignty. When American AGI can produce goods far cheaper than local human labor, economies like the UK's could collapse. They would become economically dependent "client states," reliant on American technology for almost all production, with wealth accruing to Silicon Valley.

From China's perspective, producing more than it needs and exporting at cutthroat prices is a strategic tool, not an economic problem. This form of industrial warfare is designed to weaken other nations' manufacturing bases, prioritizing geopolitical goals over profit.

The sectors within the "American Dynamism" thesis—defense, energy, space, manufacturing—are not siloed but form an interdependent system. Strong national security requires a resilient energy grid and space-based communications, which in turn depend on domestic manufacturing and critical minerals. This holistic view is crucial for both investors and policymakers.

Contrary to its goals, the U.S. trade war has resulted in self-isolation. Data shows the U.S. is the only country buying less from China, while U.S. allies and developing nations have increased their trade, leading to a record $1 trillion surplus for China. This highlights a strategic miscalculation in U.S. foreign trade policy.

German automaker Volkswagen can now develop and build an electric vehicle in China for half the cost of doing so elsewhere. This shift from simple manufacturing to localized R&D—the "innovate in China for the world" model—signifies a dangerous hollowing out of core industrial capabilities and high-value jobs in Western economies.

When trade policies force allies like Canada to find new partners, it's not a temporary shift. They build new infrastructure and relationships that won't be abandoned even if the political climate changes. The trust is broken, making the economic damage long-lasting and difficult to repair.

According to IMF data analysis, China's manufacturing surplus as a share of its GDP has surpassed 2%, exceeding the levels of Japan and Germany during their most dominant export eras. This indicates China is achieving global manufacturing dominance at a scale and speed that is historically unprecedented, fundamentally altering global trade dynamics.

Geopolitical shifts mean a company's country of origin heavily influences its market access and tariff burdens. This "corporate nationality" creates an uneven playing field, where a business's location can instantly become a massive advantage or liability compared to competitors.

US policy fetishizes a return to manufacturing, which employs 11% of the workforce. However, protectionist policies like tariffs actively harm the higher-margin, larger tourism industry, which employs 12%. This represents a sclerotic and irrational trade-off that damages a more valuable sector of the economy.