China’s 90% Model, Economic War, and How America Fights Back w/Ram Charan

Is China competing—or executing a long-term strategy to dominate global industry? In this episode of The China Desk, legendary CEO advisor Ram Charan joins Steve Yates to break down his book China’s 90% Model: China Has America by the Throat — Here’s How to Fight Back and Win. Charan argues that China’s strategy is deliberate: build capacity to meet 90% of global demand, sell below marginal cost, subsidize exports, and destroy competitors across entire industries. Drawing on six decades advising global executives—including more than 50 Chinese companies—Charan explains how this model has hollowed out American manufacturing in sectors like solar, pharmaceuticals, chemicals, and advanced materials. He describes why many CEOs understand the threat privately but hesitate to speak publicly, and why investors may be underestimating long-term risk. The conversation explores: How industrial dominance becomes national security leverage Why excess capacity and currency policy matter The strategic risk of supply chain choke points like magnets and critical inputs The need for a cabinet-level Department of Manufacturing and Technology Why economic security and national security are now inseparable Charan argues that America and its allies still possess overwhelming economic strength—but only if they coordinate industrial policy, rebuild manufacturing capacity, and communicate the stakes clearly to the public and business leaders alike. This is a high-level strategic conversation about economic warfare, industrial capacity, and what the next seven years could determine for the global balance of power. 00:00 — Introduction and Ram Charan’s background 02:40 — What is China’s 90% Model? 04:19 — Industrial dominance and strategic execution 05:18 — The origins of China’s long-term strategy 08:19 — How to measure industry capture and market share 12:06 — Why CEOs stay silent and investor blind spots 14:11 — The October wake-up moment 16:22 — When companies must exit China 18:26 — Building an allied industrial coalition 21:44 — Economic security equals national security 23:17 — War-time leverage and supply chain choke points 25:21 — Proposal: Department of Manufacturing and Technology 27:35 — Seven-year strategy and public awareness 30:27 — Where to find the book and follow Ram Charan Watch Full-Length Interviews: https://www.youtube.com/@ChinaDeskFNW