China beating West in race for critical technologies, report says (2024)

China leads the world in 37 out of 44 critical technologies, according to a report by an Australian think tank.

China leads the world in 37 out of 44 critical technologies, with Western democracies falling behind in the race for scientific and research breakthroughs, a report by an Australian think tank has found.

China is in a position to become the world’s top technology superpower, with its dominance already spanning defence, space, robotics, energy, the environment, biotechnology, artificial intelligence (AI), advanced materials and key quantum technology, according to the report by the Australian Strategic Policy Institute (ASPI).

The key areas dominated by China include drones, machine learning, electric batteries, nuclear energy, photovoltaics, quantum sensors and critical minerals extraction, according to the Critical Technology Tracker released on Thursday.

China’s dominance in some fields is so entrenched that all of the world’s top 10 leading research institutions for certain technologies are located in the country, according to ASPI.

In comparison, the United States leads in just seven critical technologies, including space launch systems and quantum computing, according to ASPI, which receives funding from the Australian, United Kingdom and US governments, as well as private sector sources including the defence and tech industries.

The UK and India are among the top five countries in 29 of the 44 technologies, with South Korea and Germany making the top five in 20 and 17 technologies, respectively, the report said.

ASPI said China’s growing prowess in critical technologies, which the think tank credited to long-term policy planning, should be a “wake-up call for democratic nations”.

“In the long term, China’s leading research position means that it has set itself up to excel not just in current technological development in almost all sectors but in future technologies that don’t yet exist,” ASPI said in a commentary accompanying the report.

“Unchecked, this could shift not just technological development and control but global power and influence to an authoritarian state where the development, testing and application of emerging, critical and military technologies isn’t open and transparent and where it can’t be scrutinised by independent civil society and media.”

The think tank laid out 23 recommendations for Western countries and their partners and allies. They include establishing sovereign wealth funds to fund research and development (R&D), facilitating technology visas, “friend-shoring” and R&D grants between nations, and pursuing new public–private partnerships.

The US and China are locked in a heated competition for power and influence that has spurred moves to decouple their economies. US President Joe Biden’s administration has rolled out a raft of export controls and tax incentives aimed at hobbling China’s tech industry and restoring domestic manufacturing.

On Thursday, the US Department of Commerce added units of China’s genetics company BGI and cloud computing firm Inspur to a trade blacklist for allegedly supporting the Chinese military and facilitating government surveillance.

I'm an expert in the field of technology, geopolitics, and economic trends with a deep understanding of the dynamics shaping the global landscape. My knowledge spans various critical technologies, their development, and the geopolitical implications associated with them.

The recent report by the Australian Strategic Policy Institute (ASPI) underscores a significant shift in the global technological landscape, highlighting China's remarkable dominance in 37 out of 44 critical technologies. This is a clear testament to China's strategic, long-term planning and sustained investments in research and development across diverse sectors.

Key Concepts:

  1. Critical Technologies: The term "critical technologies" refers to key areas of technological advancement that have significant implications for national security, economic competitiveness, and scientific progress. In this context, it includes a wide range of fields such as defense, space, robotics, energy, environment, biotechnology, artificial intelligence (AI), advanced materials, and quantum technology.

  2. Technological Domains: China's dominance spans various technological domains, including drones, machine learning, electric batteries, nuclear energy, photovoltaics, quantum sensors, and critical minerals extraction. These domains are critical not only for economic growth but also for military and strategic capabilities.

  3. Geopolitical Implications: The report suggests that China's leading position in critical technologies could pave the way for it to become the world's top technology superpower. This dominance extends beyond the current technological landscape to future technologies that are yet to emerge. The geopolitical implication is that China could wield significant influence and control over global technological development, potentially shifting the balance of power in its favor.

  4. Global Ranking: The report reveals that China hosts all of the world's top 10 leading research institutions in certain technologies. In contrast, the United States, often considered a technological powerhouse, leads in only seven critical technologies. This information reflects the changing dynamics in global research and development capabilities.

  5. Policy Recommendations: ASPI provides 23 recommendations for Western countries to address the challenges posed by China's technological dominance. These recommendations include establishing sovereign wealth funds for research and development, facilitating technology visas, promoting international collaboration through "friend-shoring" and R&D grants, and exploring new public-private partnerships.

  6. US-China Competition: The article mentions the intense competition between the United States and China for power and influence, resulting in efforts to decouple their economies. The U.S. has implemented measures such as export controls and tax incentives to counter China's technological rise and protect its domestic industries.

In conclusion, the ASPI report serves as a wake-up call for democratic nations to reassess their strategies in the face of China's growing technological prowess. The recommendations emphasize the need for collaborative efforts, innovation, and strategic investments to maintain competitiveness in critical technologies and ensure a transparent and open technological landscape.

China beating West in race for critical technologies, report says (2024)
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