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This is CBS I In The World. I'm John Bachelord with Jonathan D.T. Ward. The book is the decisive decade. American grand strategy for triumph over China. I've been emphasizing the Chinese point of view because it's a fascination and it's non-transparent.

Jonathan's book also involves the American point of view and what needs to be done. He's touched on many of these items before but it's worth repeating some of them.

The one I go to immediately, Arsenal of Democracy. I've always loved that term Jonathan. Secure allied supply chain and a new Arsenal of Democracy. Since February 24, 2022, the Arsenal looks half empty, maybe fully empty. What needs to be done Jonathan?

We're going to need to rebuild our industrial base. That's one of the most significant elements of this contest. In the Second World War, we were nearly three times the size of the combined industrial output of Germany and Japan together during the 1930s.

Today, we're about 15% of world manufacturing but China is 30% of world manufacturing. Not only are we not at the overwhelming majority as opposed to our adversaries. We are trailing our adversaries here.

I think we're seeing that alarm bell ring when it comes to actual military power. Many groups have now focused on the fact that our own existing Arsenal cannot supply a conflict with Russia and China or even with one of them for long.

We need to have a broader general industrial base. That means focusing on rebuilding the US manufacturing base, securing our supply chains and deploying capital in America to ensure that our manufacturing and industrial capabilities change dramatically.

Part of that is going to be the decoupling from China. That will take place on some level or another. But the more that we're able to build from ourselves or from our allies as opposed to from our adversaries in Beijing, the better off will be.

North American economic integration. What is that?

One of the day what we really need is to have a stronger, fuller North American economic presence. Moving factories out of China into Mexico is something that could be very beneficial to this. That is something that is viable for many companies that would like to supply the US market.

We need to be able to build a more sustainable market to no longer be building in China and manufacturing in China and sending across the Pacific, but to do it here.

Our resource space, our natural resources in the continent of North America are incredibly powerful. If we can get our manufacturing base back, we have incredible advantages in technology, innovation, energy, food, what we're lacking is industrial capacity.

We always had until we went into the failed bargain with the people's Republic of China. So I think to have not only the United States, but North America as a cornerstone of the world economy is one of the most important things we can achieve.

A new frontier of economic power. I like this because you work backwards from 2100. And in your book, you mentioned that we've got a whole of economy transformation underway. What will that look like?

The fourth industrial revolution, which will take place, it's really about the digitization of industries, the internet of things, and also the creation of new industries.

This is going to be a moment in economic history that has begun now and will last for the next 10 or 20 years.

It's going to redefine economic history in similar ways to the first three industrial revolution.

I talk about all that in the book. And the point is that's our opportunity to seize. And we want to be looking for these inflection points in the future of the world economy.

If we look back at the innovations that we can achieve and unlock essentially in the decades ahead and also deny that to our adversaries, then I think we're going to be able to rebuild the delta.

We're going to be massive productivity increases for the US that can come from that. I mean, adding the next 10 trillion in national wealth, excuse me, national GDP to say nothing of many tens of trillions in national wealth.

And some of this is going to be the result of the fourth industrial revolution. And at the same time, Beijing has an even clearer plan for how to utilize that when it comes to their own economic strategies.

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