A global industrial rebalance: China, the U.S. and energy-intensive manufacturing

A "global industrial rebalance" refers to a recent relocation of some energy-intensive industries from China to technologically more advanced countries. This is a reversal of the trend of several decades, which has resulted in a global concentration of energy-intensive manufacturing in China, notably steel, cement, aluminum, paper and glass. In this article, I argue that such a global industrial rebalance would benefit both China and the world. The relocation of energy-intensive production is also economically viable, as illustrated by a number of recent investments in developed countries by Chinese firms in those industries.