China thinks it's headed in the right direction to become a global tech powerhouse in the decades to come. The rising nation aims to allocate a lot of money to improve its technology in different fields of specialization, such as robotics.
The strategic push aims to solidify Beijing's position as a leader in the high-growth technology sector while simultaneously preserving the grassroots of development.
Jin Zhuanglong, head of China's Ministry of Industry and Information Technology, emphasizes China's unique ability to focus resources on specific technological breakthroughs. This approach is seen as a way to bridge the gap in core technologies created by potential limitations imposed by other nations.
"There are still outstanding shortcomings in key core technologies and basic industrial capabilities," the 60-year-old entrepreneur said.
As The South China Morning Post reports, Jin acknowledges that the nation's industrial development, while impressive, is at a critical juncture.
The focus now shifts towards being "big" in production and becoming "strong" in technological leadership.
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Beyond the Horizon: Vanguard Industries Fueling the Future
China's vision extends beyond immediate needs. The country has identified a range of "vanguard industries" as crucial for future dominance. These include brain-computer interfaces, the metaverse, next-generation internet infrastructure, quantum computing, and deep-sea and aerospace technologies.
Jin also highlights establishing national manufacturing innovation centers dedicated to emerging fields like biomanufacturing.
The Powerhouse of Manufacturing
China's manufacturing sector remains a cornerstone of its economy. In 2023, manufacturing contributed 26.2% to China's GDP, representing roughly one-third of the world's total manufacturing output. "Strategic" emerging industries currently account for 13% of GDP, showcasing immense potential for future growth.
Jin says that established industries like iron and steel are not considered "low-end" sectors for elimination. Instead, they are recognized as the foundation of the modern industrial system and require focused transformation and upgrades.
Nurturing Champions: Cultivating Leaders in Emerging Fields
While fostering innovation is crucial, China also recognizes the vital role of established industry leaders.
Jin outlines plans to further enhance technology within advantageous industries like new energy vehicles and photovoltaics. Market expansion and cultivating leading enterprises are also prioritized in sectors like artificial intelligence, the low-altitude economy (drone technology), and new materials. These initiatives aim to fuel comprehensive industrial upgrades.
Foreign Investment and Market Access
What's good with China is that it acknowledges the importance of international collaboration and market access. Earlier this year, the country announced it would remove restrictions on foreign investment in manufacturing.
Telecommunications market access is open to foreign companies in strategic locations such as Beijing. This commitment to openness is further evidenced by over 2,000 foreign telecommunications businesses operating in China as of June 2024.
Ambition and Reform Drive Growth
China's economic and technology leadership aspirations are further fueled by the upcoming third plenary session of the Central Committee scheduled for July 15-18, per Nikkei Asia.
This important event is expected to set ambitious goals for the next decade, propelling China's journey towards becoming a global tech leader. This could also mean surpassing the current powerhouse in the tech space, the United States.
A UN report stated that the US lagged behind China in generative AI patent applications.
