Pfizer and Wells Fargo CEOs warn US is losing competitive edge to China

Wells Fargo CEO Charlie Scharf and Pfizer CEO Albert Bourla have warned that the US is at risk of losing its competitive edge to China.

Speaking at CNBC’s inaugural Invest in America Forum in Washington, the two executives stated that while the US remains a leader in many sectors, “inconsistent policies and insufficient investments” are creating an opening for China.

The two leaders noted that artificial intelligence presents both risks and opportunities for the US economy.

Scharf argued that artificial intelligence will likely reduce the workforce but increase productivity.

“We will definitely need fewer people,” the Wells Fargo chief said. “When we look at the tools we are implementing just for people who code, we are seeing a 20%, 30%, 40% increase in coder performance. We haven’t reduced our headcount by 20%, 30%, or 40%. In fact, we are doing more than we normally could.”

Major banking rivals of Wells Fargo, such as JPMorgan and Goldman Sachs, are already employing fewer people due to advancements in artificial intelligence.

Scharf also stated that despite the ongoing political gridlock in Washington, the financial sector is prepared for significant regulatory changes.

“Ultimately, we expect significant changes in capital and liquidity requirements,” the CEO said. “We expect changes that will enable not just large and medium-sized banks, but also smaller banks, to do more in these local communities.”

The head of Pfizer expressed concern over China’s growing strength in biotechnology and pharmaceuticals, highlighting its increased spending on research and development, regulatory reforms, and a national strategy focused on life sciences.

“They [China] filed more patents than the US this year,” Bourla said. “This is unprecedented in history. Five years ago, that ratio was 90% to 10%. The gap is closing, and if we don’t act, they will likely surpass us.”

The Pfizer CEO urged the US to focus on enhancing its own productivity and innovation rather than attempting to slow China’s progress.

“We spend more time thinking about how we can slow down China than about how we can be better than them,” Bourla said. “We need regulatory changes here. We need stability. Tariffs and pricing were not helping.”

As part of a broader effort to eliminate long-standing uncertainties regarding pricing, Medicaid reimbursements, and distribution, Pfizer recently signed a drug pricing agreement with the Trump administration.

As part of the agreement, Pfizer received a three-year exemption from drug-specific tariffs on the condition that it makes additional investments in US manufacturing.

“The uncertainty of tariffs and radical corrections in US pricing—with this agreement, we are eliminating both,” Bourla said on Wednesday.

He also described artificial intelligence as the next frontier in medicine, predicting that AI will revolutionize drug discovery by significantly accelerating the timeline for finding treatments for diseases like Alzheimer’s and cancer.

“We have been trying to find treatments for years,” Bourla asserted. “AI will make it happen.”