The magic of Shenzhen is the combination of the world’s most creative hardware engineers sitting in a sea of components that improve every year amid a labour force of millions who know how to put together electronics. The buzzing ecosystem has produced many other products that follow in Apple’s wake, like hoverboards, electric scooters, virtual reality headsets, and who knows what’s next?

By the mid-2010s, Chinese companies figured out how to make all the German tools, as well as the entirety of the solar value chain. The plunge on solar power costs over the last decade has been driven less by breakthroughs in science— which is the United State’s strong suit— than by efficient production, which is China’s strength. The beneficiaries are not only the climate but also China’s national power.

Science matters of course. China remains weak in chips and aviation in part because these are much more scientifically complex industries than solar. Not every technology improves through iterative adjustments to manufacturing processes, but a great deal can follow its logic. When lots of companies are doing similar things, in a brutally competitive environment where profit margins are small, they establish communities of engineering practice like Shenzhen. These factories will never be as glamorous as the desirable branding represented by Apple or Tesla. Every day, millions of workers go to factories to build up technological process knowledge.

It’s hard, I admit, to draw a straight line between the loss of, for example, television manufacturing in the United States through the 1980s to the stumbles by Boeing and Intel over the past decade. But if we think about technology ecosystems as communities of engineering practice, it makes sense that factory closures accelerated as process knowledge dissolved, prompting production problems and more job losses. And it also makes sense that Chinese workers went from merely assembling iPhones to producing a some of their most valuable components as well.

Everything starts from the recognition that something has gone quite wrong in US technology. Too many people have argued away the strategic importance of manufacturing. And the solution has to involve reconstituting its communities of engineering practice that prioritize process knowledge. It means attempting to build up every segment of manufacturing: training workers and creating incentives for manufacturers in order to relearn mass production.

This scenario sounds a bit fantastic, but if the iPhone were built in the United States rather than Shenzhen, then an American city— say Detroit, Cleveland, or Pittsburgh— might be hailed as the hardware capital of the world.

The engineering state still has many strengths. There is one thing I haven’t changed my mind about since 2017: I remain more confident than ever that China will become a technological leader in manufacturing industries.

Marxists like to reason through contradictions. What is the central contradiction facing China? I submit that we must reconcile two realities when we read the headlines. First, the rich, the creative, and the desperate have chosen to rùn from the economic and political gloom that pervades Xi’s third term. Second, the manufacturing sector continues to go from strength to strength in the mastery of electric vehicles, clean technology, and other advanced technologies.

How might they be reconciled? With the idea of the engineering state.