China has won the trade war-

Adapting to the dual challenge of China’s military and its economy has been a focus of U.S. administrations for years. America is losing ground.

Modern warfare is a contest of industrial might, as Russia’s invasion of Ukraine has shown. Both sides are burning through arsenals of artillery shells, rockets and military vehicles. Automated factories now spit out drones day and night. Even an old-fashioned howitzer requires precision manufacturing.

The U.S. won World War II in part by producing more of everything—from bullets to food—than its enemies. One California shipyard in 1942 assembled a supply ship in less than five days. America is no longer capable of that kind of manufacturing feat.

Today, the country that can make the most of almost everything is China. Its products run the gamut from basic chemicals to advanced machinery. With tensions rising between the U.S. and China, the two countries’ industrial capacity is coming into focus as a key battleground in any conflict.