SINGAPORE — An Australian think tank that tracks tech competitiveness says China is now the world leader in research on almost 90% of critical technologies. In a newly released report, the research group adds there is also a high risk of Beijing securing a monopoly on defense-related tech, including drones, satellites and collaborative robots — those that can work safely alongside humans.
Analysts say the huge leap forward for China is the result of heavy state investment over the past two decades. They add that despite the progress, Beijing is still dependent on other countries for key tech components and lacks self-sufficiency.
The report from the government-funded Australian Strategic Policy Institute, or ASPI, released last Thursday, says China led the way in research into 57 out of 64 advanced technologies in the five years from 2019-2023.
ASPI’s Critical Technology Tracker ranks countries’ innovation capabilities based on the number of appearances in the top 10% of research papers. It focuses on crucial technologies from a range of fields including artificial intelligence, biotechnology, cyber and defense.
The report found that “China and the United States have effectively switched places as the overwhelming leader in research in just two decades.”
China led in only three of the 64 technologies between 2003 and 2007 but has shot up in the rankings, replacing the U.S., which is now a frontrunner in just seven critical technologies.
Josh Kennedy-White is a technology strategist based in Singapore. He says China’s huge leap is a “direct result of its aggressive, state-driven research and development investments over the past two decades.”
He adds that the shift toward China is “particularly stark in fields like artificial intelligence, quantum computing and advanced aircraft engines, where China has transitioned from a laggard to a leader in a relatively short period.”
ASPI also determines the risk of countries holding a monopoly on the research of critical technologies. They currently classify 24 technologies as “high risk” of being monopolized — all by Beijing.
Ten technologies are newly classified as “high risk” this year, with many of them linked to the defense industry.
“The potential monopoly risk in 24 technology areas, especially those in defense-related fields like radars and drones, is concerning in the current and future geopolitical context,” Tobias Feakin, founder of consultancy firm Protostar Strategy, told VOA.
Chinese President Xi Jinping has sought to boost his country’s advanced manufacturing capabilities with the ambitious “Made in China 2025” initiative.
The policy, launched in 2015, aims to strengthen Beijing’s self-reliance in critical sectors and make China a global tech powerhouse.
Xi, according to Feakin, views advanced technologies as “strategic priorities for China’s development, national security and global competitiveness.”
He adds that technologies are seen as a “central component of China’s long-term economic and geopolitical goals.”
Beijing’s ambitions are being closely watched in Washington, with the Biden administration working to limit China’s access to advanced technology.
Last week, the U.S. introduced new export controls on critical technology to China, including chip-making equipment and quantum computers and components.
That announcement came shortly after U.S. national security adviser Jake Sullivan made his first ever visit to Beijing. He met with Xi and Chinese Foreign Minister Wang Yi.
Sullivan told reporters that Washington “will continue to take necessary action to prevent advanced U.S. technologies from being used to undermine national security.”
The continued efforts to curb China’s chip industry mean that Beijing must look further afield for advanced technology.
“Even though it leads in areas like artificial intelligence and 5G, China still depends on Taiwan, the U.S. and South Korea to produce high-end semiconductors”, Kennedy-White told VOA.
Describing this as China’s Achilles’ heel, Kennedy-White says the lack of self-sufficiency in the semiconductor industry could “stunt Beijing’s progress in artificial intelligence, quantum computing and military applications.”
As China continues its dominance in critical technology research, questions have been raised over exactly how the country is making these breakthroughs.
Last October, officials from the Five Eyes intelligence alliance (Australia, Canada, New Zealand, the United Kingdom and the United States) issued a joint statement accusing China of stealing intellectual property. U.S. FBI director Christopher Wray described it as an “unprecedented threat.”
Kennedy-White, managing director of Singapore-based venture catalyst firm DivisionX Global, agrees with this assessment. He says China’s jump up the ASPI rankings is “not entirely organic.”
“There is a correlation between China’s rise in certain technologies and allegations of intellectual property theft,” he added.
ASPI also recommends ways for other countries to close the gap on China. It advises the AUKUS alliance of Australia, the U.K. and the U.S. to join forces with Japan and South Korea to try to catch up.
The report also highlights the emergence of India as a “key center” of global research innovation and excellence.
The South Asian nation now ranks in the top five countries for 45 out of the 64 technologies that are tracked by ASPI. It’s a huge gain compared with 2003-2007, when India sat in the top five for only four technologies.
Feakin says countries across the Asia-Pacific “will benefit from leveraging India’s growing technology expertise and influence.”
It will also provide a counterbalance to “overdependence on China’s technology supply chain,” he added.
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