Geopolitical tensions and domestic challenges are accelerating China’s push toward technological self-sufficiency.
As US sanctions intensify, China is doubling down on innovation across artificial intelligence (AI), semiconductors, robotics, and 5G.
Strategic investments in critical minerals, digital infrastructure, and automation are positioning China to lead the next industrial revolution, reshaping global supply chains and creating a parallel tech ecosystem independent of Western influence, observes GlobalData.
GlobalData’s latest Strategic Intelligence report, “China Tech”, discusses the issue of whether China will lead the world into the Fourth Industrial Revolution by 2030, spurred towards greater self-reliance by the imposition of increasingly stringent US tariffs and sanctions. It looks at how things may play out for China in 14 of the key next-generation technology markets, namely semiconductors, 5G, robotics, consumer electronics, electric vehicles and energy storage, space technology, military technology, high-performance computing, biotechnology, alternative energy, autonomous vehicles, AI, smart cities, and internet platforms
Isabel Al-Dhahir, principal analyst: strategic intelligence at GlobalData, comments: “One of China’s most prescient early moves was its upstream investment in mining and processing various critical minerals. This strategic decision has allowed the country to secure a pivotal position in global supply chains.
“China has seen consolidation of its midstream and downstream capabilities through investment into end-use products and the build-out of digital infrastructure to support the evolution of emerging technologies.”
Beyond the influence of US restrictions, China’s technological landscape has been significantly molded by internal factors, particularly its aging demographics and contracting workforce. In response, China has championed using robots to mitigate the impact of these demographic challenges.
The International Federation of Robotics (IFR) reports that, as of 2023, China boasts 470 robots per 10 000 workers — a figure that has doubled since 2019, placing it third in the global rankings, just behind South Korea and Singapore. Both of these nations are similarly grappling with the implications of aging populations.
Al-Dhahir continues: “AI and robotics are central to China’s growth strategy. China is the world’s manufacturing hub but faces rising labor costs and a shrinking labor force. Japan dominates the robotics supply-side market. However, China has articulated objectives to strengthen its home-grown R&D.”
Another item high on China’s agenda is the further development and deployment of 5G networks and, by the late decade, the creation of almost zero-latency 6G wireless networks. This vision includes deploying a vast number of connected devices enhanced by real-time sensor data, leading to the creation of ultra-smart cities and digital ecosystems.
Al-Dhahir concludes: “China is engaged in every significant technological frontier of the 21st century. The attempts to impede its advancement have, paradoxically, only hastened its progress.
“For some time, China has sought to expand its influence across developing markets, financing infrastructure projects and making recipient countries dependent on its technologies. This trend will likely continue, with further fragmentation of global supply chains and even the creation of separate technospheres with competing standards.”