- tech360.tv
China's Tech Innovation Surges Ahead, Challenging US Dominance
China's technological innovation is much stronger than previously understood, challenging US dominance. Chinese firms lead in nuclear power, electric vehicles and batteries. China is expected to surpass the US in nuclear-power generation by 2030.
A groundbreaking 20-month study by the Information Technology and Innovation Foundation (ITIF) has revealed that China's technological innovation is far more advanced than previously believed, posing a significant challenge to US technological supremacy. The investigation, which examined 44 Chinese firms across key technologies, found that China has already taken the lead in certain areas and is likely to equal or surpass Western firms in many others within the next decade.
Stephen Ezell, an analyst at ITIF, presented the findings at a Capitol Hill event, emphasising the strength of the Chinese innovation system. The study assessed companies based on factors such as R&D investment, personnel, internal innovation teams, international awards and market share, comparing them to global leaders in their respective fields.
In the nuclear power sector, China is estimated to be 10 to 15 years ahead of the US in deploying fourth-generation reactors at scale. The country is currently building more nuclear reactors than the rest of the world combined, and it is expected to outperform the United States in nuclear power generation by 2030. China has already become the first country to operationally deploy advanced fourth-generation reactors featuring new designs and passive safety systems.
China's automotive industry has grown rapidly, producing 62% of the world's electric vehicles and 77% of EV batteries. From producing only 5,200 cars in 1985, China is expected to produce 26.8 million vehicles this year, accounting for 21% of global production. By the end of the decade, this share is expected to reach 30%.
While China remains behind American and Western biopharmaceutical leaders, it is quickly catching up. China's share of global value added in the biopharmaceutical industry quadrupled from 2002 to 2019, reaching nearly 25%. In robotics, although Chinese companies were found to be less innovative than their American, South Korean or counterparts, China deployed more industrial robots last year than the rest of the world combined.
The semiconductor industry remains an area where China is still behind, with the latest advanced chip made by Huawei Technologies estimated to be three years off pace. Despite facing severe US sanctions in 2020, Huawei surprised Washington last year when it launched a new smartphone powered by a domestically produced advanced semiconductor.
Rick Switzer, a former US State Department tech policy expert, emphasised that China's innovation is not solely driven by stolen Western technology. He cited Ford executives' recent visit to China, where they discovered Chinese EVs to be not only cheaper but also more innovative. Switzer also noted that China has emerged as a significant contributor to scientific research, with Chinese nationals and institutions working on more published papers with US researchers than any other country.
The study's findings have important implications for US policymakers and politicians. Congressman John Moolenaar emphasised the significance of export and outbound capital controls as part of America's defensive strategy against China. Meanwhile, Emily Jin of Datenna warned that China is rapidly advancing in cutting-edge fields, with the goal of translating technological leadership into economic growth and geopolitical power.
China's technological innovation is much stronger than previously understood, challenging US dominance
Chinese firms lead in nuclear power, electric vehicles and batteries
China is expected to surpass the US in nuclear-power generation by 2030
Source: SCMP