By 2025 or even sooner, it is quite possible that we will see the polarization of technology in this world. On one side is the U.S. and its partners and on the other side is China. The battles for dominance of competing technologies have already been happening.
The most recent example is the banning of TikTok and WeChat in the U.S due to national security and economic reasons. Another example is the restrictions requiring companies to obtain licenses to export U.S. items such as semiconductors and chipsets or while using U.S. technologies in the design and manufacture of these items, in order to prevent Huawei from purchasing or manufacturing by overseas foundries for Huawei.
Back in 2015, China announced their campaign for “Made in China 2025” in which they set 2025 as their goal to restructure their manufacturing industry by integrating new technologies, strengthen Chinese brands, and supporting ten key sectors in order for Chinese companies to compete globally. Those sectors are New Information Technology, high-end numerically controlled machine tools and robots, Aerospace equipment, Ocean engineering equipment and high-end vessels, High-end rail transportation equipment, energy saving cars and new energy cars, electrical equipment, farming machines, new materials such as polymers, bio-medicine and high-end medical equipment.
China has been making strides in these areas and the response of the U.S. has been to box in China’s advances by banning companies like TikTok and WeChat and restricting access from U.S. software and technology to Huawei. There are also talks of possible sanctions on China’s chip industry through restrictions of Semiconductor Manufacturing International Corp. China has yet to respond, but when it does what would it look like?
China’s response so far has been more defensive than offensive. They’ve been investing heavily in these new technology industries from AI and robotics to the cloud and electric vehicles. China has launched the STAR Market to raise capital for startup tech firms. With possible sanctions on the horizon for the chip industry, China has invested in their homegrown chip design and manufacturing by offering preferential tax relief to chip manufacturers.