TIF&NNOVTIONFOUNDATIONHAMILITONCENTERONINOUSTRIALSTRATEYThe Hamilton Index. 2026: China'sDominance in Advanced IndustriesIs GrowingMEGHANOSTERTAG|MAY2026China now oroduces nearlv one-quarter of global output in the 10 advanced industries that makeup ITIF's Hamilton Index, outpacing all other nations. America and the West must recognize thatChina's gains are coming at the expense of their techno-economic and national power,KEYTAKEAWAYSChina now dominates advanced industry production globally, holding nearly one-quarter of the global market across al1 Hamiton industries combined, and leading productionin 7 of the 10 advanced industries.China's rise in advanced industrv outout has been unprecedented in speed and scalehaving grown from less than one-fifth of global output in 2012 (19 percent) to nearlyone-quarter in 2022(24.9 percent).Overall. China overperforms relative to the size of its economv. with an LQ of 1.36(meaning 36 percent above the global average). By comparison, America underperformswith an LQ ofjust0.88(12 percentbelow averace),America's global market share in Hamilton industries grew marginally faster than China'sfrom 2020 to 2022. But to match China 's overall LQ n 2022, U.S. advanced-industry output would have needed to be 56 percent higher-a margin of $1.5 tillion. oecD nations experienced a dram atic losof idustileadership over the last decadefor which data is available on trade in value added. Their combined share of advancedindustry output fell from64percentin 2012to58 bercentin2022.Without stronger policy action, the United States and ts allies across the West risksuffering continued erosion of their advanced industrial base, which will leave themincreasingly vulnerable to techno-economic and national security coercion.itif.org
CONTENTSKeyTakeaway...........。IIntroduction.t.............Overal 1-iI..............Specilization..........Tp1PoiesTheChinaJuggernautTheFlloftheEC...Thellnited States and OECD vs. China and the Rest of the World,19Computers, Electronis, and optical .ro.u......ceo..........Machineyanm.........RasieMetals3>Fabricatede..圄闇.............................ere..............4therTransprtatinEuim......China.065emw)..-...................orte..............India..........83France.....................S1............................99102.....INFORMATIONTECHNOLOGY&INNOVATIONFOUNDATIONIMAY2026PAGE2ICONTENTS
...............0,+......................1.SelectReaional Groupin....113EU-17..............11310.0...................115TheCommonv.e.......................TheQuad..........119Bett&RoaWem.......,123Appenidix-A;-Hamilton ndexIndust.....123Aopendix B:Country Grouping...0124Appendix C: Hamilton Index Calculatoio...125Appendix D:Specialization Index Catculath.1.,6hn............TheHamiltonIndex.2026:Data Visualization Tools"The Hamilton Index, 2026: Industry Visualizations"(ITIF, May 2026)https:/itif.org/publications/2026/05/06/hamilton-index-2026-industry-visualizations"The Hamilton Index,2026:Country Visualizations"(ITIF, May2026)htps/ftitor/publicatins/2026/05/06/hamilton-i...
