"China accounts for 19.8 percent of the world's manufacturing output, compared with the U.S. at 19.4 percent.
The U.S. shouldn't worry too much, says Mark Killion, IHSs head of world industry services.
It's more productive, staying neck and neck with China with far fewer workers.
"The U.S. has a huge productivity advantage in that it produced only slightly less than Chinas manufacturing output in 2010 but with 11.5 million workers compared to the 100 million employed in the same sector in China," Killion says.
Furthermore, a lot of those workers in China are producing goods for Chinese subsidiaries of U.S. companies."