China’s rise as a global leader in modern technologies is a testament to its strategic investments, innovative policies, and historical legacy of inventions. From pioneering advancements in artificial intelligence (AI) and 5G technology to its significant contributions in renewable energy, EVs, high speed rail, and biotechnology, China has positioned itself at the forefront of technological innovations.
The real breakthrough in leap frogging in technology came during the economic reforms in the late 70s. Since President Deng Xiaoping initiated economic reforms in 1978, China has experienced remarkable economic growth and transformation. Here are some key milestones:
>Economic Growth: China’s GDP grew from approximately $150 billion in 1978 to over $17.79 trillion as of 2023. This represents about 16.88% of the global economy.
> Foreign Reserves: China now holds the world’s largest foreign reserves, amounting to >$3.28 trillion.
> Global Economic Share: China’s share of the global economy increased from 1.8% in 1978 to >17% in 2023.
Continued reforms and strategic plannings after 1978 have transformed China into the world’s second-largest economy and have accelerated its journey of pursuing and excelling in the innovative technologies.
Historical Contributions
This is not the first time that China is leading as a global leader in the technologies. If we go through the pages of innovation history, we will find that the ancient China during the Tang and Song dynasties was a period filled with remarkable innovation and technological advancement in China. During this period, it was China that invented gunpowder, paper, printing, printed money, and the compass. They all have a profound impact on the world and significantly influenced global development.
Marcopolo on his return from China back to Italy in 1288 documented in detail about these unique inventions in his travelogue. Later, through the ancient Silk Road trading these inventions were introduced to the other nations.
These remarkable inventions during the ancient China clearly shows that innovation has been in Chinese DNA since the ancient times. And this is the same spirit and drive that is transforming the modern China into a global leader in the contemporary innovative technologies and high-tech industry sectors.
Technological Leadership in Modern Times
Artificial Intelligence (AI): China has emerged as a global powerhouse in AI, driven by government support and a thriving tech ecosystem. The Chinese government’s AI development plan aims to make the country the world leader in AI by 2030. Companies like Baidu, Alibaba, and Tencent are at the forefront of AI research and development, focusing on areas such as facial recognition, natural language processing, and autonomous driving. China’s AI advancements are not only transforming industries but also enhancing public services, from healthcare to urban management.
The integration of AI in various sectors has led to significant improvements in efficiency and productivity. For instance, in healthcare, AI is being used for early diagnosis of diseases, personalized treatment plans, and even robotic surgeries. In urban management, AI-powered systems are optimizing traffic flow, reducing energy consumption, and improving public safety through advanced surveillance technologies.
5G Technology: China’s leadership in 5G technology is another significant milestone. With companies like Huawei and ZTE spearheading the development and deployment of 5G networks, China has established itself as a leader in this critical technology. The country has invested heavily in 5G infrastructure, aiming to cover urban and rural areas comprehensively. This technology is expected to revolutionize various sectors, including smart cities, driverless vehicles (DLVs), and the Internet of Things (IoT).
The widespread adoption of 5G technology is set to transform industries by enabling faster data transmission, lower latency, and greater connectivity. In smart cities, 5G networks will support the deployment of sensors and devices that monitor and manage urban infrastructure in real-time. DLVs will benefit from the high-speed, low-latency communication that 5G provides, allowing for safer and more efficient transportation systems. The IoT will see exponential growth as 5G enables the seamless integration of billions of connected devices, leading to smarter homes, industries, and public services.
Renewable Energy: China is also a global leader in renewable energy, particularly in solar and wind power. The country is the largest producer of solar panels and has the highest installed capacity of wind power. China’s commitment to reducing carbon emissions and transitioning to a green economy is evident in its ambitious renewable energy targets and investments in clean technologies. The development of advanced battery technologies and electric vehicles further underscores China’s leadership in this sector.
China’s renewable energy initiatives are driven by both environmental and economic considerations. The country aims to peak its carbon emissions by 2030 and achieve carbon neutrality by 2060. To meet these goals, China is investing in large-scale solar and wind farms, as well as innovative energy storage solutions.
Solar Energy: Like in other renewable energies, China has made significant advancements in solar technology, positioning itself as a global leader in this field. China has the largest solar energy capacity in the world. In 2022, it installed as much solar photovoltaic capacity as the rest of the world combined, and then doubled new solar installations in 2023. With the significant investments in the R&D, Chinese companies are at the forefront of solar panel efficiency, energy storage solutions, and smart grid technology. China’s advancements in solar technology are influencing energy policies worldwide.
The country produces over 60% of the world’s solar panels, making it a key player in the global solar market. By 2030, China aims to reach 1,200 gigawatts of renewable capacity with a massive portion coming from solar energy. With the current pace, it is expected to meet this target well ahead of its schedule. These efforts not only help China reduce its reliance on fossil fuels but also contribute significantly to global renewable energy targets.
High Speed Rail (HSR): China’s advancements in high-speed rail are unprecedented in the history of mass transportation. China prides having the world’s largest high-speed rail network, spanning over 45,000 kilometers (28,000 miles) as of 2023. This rail-network connects all provincial-level administrative divisions, including Hong Kong. The fastest commercial train service in China is the Shanghai Maglev that reaches its speed up to 431 km/h (268 mph). Additionally, the CRH express service between Beijing-Shanghai averages to 291.9 km/h (181.4 mph), making it the fastest train service in the world. With these unprecedented successes, China is pioneering the maglev trains (which use magnetic levitation to eliminate friction) which can achieve much higher speeds. Recently, these trains have reached speeds of 623 km/h (387 mph), with future targets of reaching to 1,000 km/h (621 mph). The HSR network has significantly boosted China’s economy by reducing travel times, improving safety, and facilitating tourism and labor mobility. Studies estimate an annual economic return of 8% from these investments. China is also exporting its HSR technology to other countries. For instance, it is engaged in building high-speed rail lines in Morocco and Malaysia.
These advancements not only showcase China’s engineering prowess but also its commitment to sustainable and efficient transportation solutions.
EVs & Driverless Vehicles: For the Electric Vehicles (EVs) and Driverless Vehicles (DLVs), China has built its dominance from ground up. According to the industry data, in 2023 China had more than 300 EV manufacturers while in 2019 there were about 500 manufacturers. The decrease happened due to consolidation and intense competition for the domestic as well as for the export markets. In 2023 EV production was >6.1million units and since then it has increased further. The EVs dominance in the global market is supported by its vast battery manufacturing leadership with 900 gigawatt-hours of capacity that represents 77% of the global capacity. BYD, Geely and NIO are the major players in this space in addition to Tesla. The EVs are offered at every price level, starting from just under $20,000 to up to $250,000! China’s major export market is Europe in addition to SE Asia (Thailand, Philippines, Vietnam), UAE, Türkiye, Canada, Mexico, Australia, and South America.
In the DLVs space, China is making noteworthy progress to becoming the leader in this arena, also. The DLV technology is supported by the policymakers for extensive testing and development of the technology by building smart infrastructure like connected smart roads equipped with sensors, cameras, and data transmitters to communicate in real time with the DLVs. This strategy is advancing the technology at a faster pace and setting global standards. Also, these efforts are positioning China as a leader in the DLVs industry and an opportunity to revolutionizing the entire mobility industry globally.
Biotechnology: In biotechnology, China has made significant strides, particularly in genomics and biopharmaceuticals. Companies like BGI and WuXi AppTec are leading the way in genetic research and drug development. China’s focus on biotechnology is part of its broader strategy to enhance healthcare and address global health challenges. The country’s rapid response to the COVID-19 pandemic, including the development and distribution of vaccines, highlights its capabilities in this field.
China’s advancements in biotechnology are transforming healthcare by enabling more precise and personalized treatments. Genomic research is uncovering the genetic basis of diseases, leading to the development of targeted therapies and preventive measures. Biopharmaceutical innovations are resulting in new drugs and vaccines that address unmet medical needs. China’s investment in biotechnology is also fostering international collaborations, contributing to global health security and innovation.
E-commerce and Fintech: China’s e-commerce and fintech sectors are among the most advanced in the world. Platforms like Alibaba’s Taobao and JD.com have revolutionized online shopping, while fintech companies like Ant Group have transformed financial services through innovations in digital payments, lending, and wealth management. The widespread adoption of mobile payment systems, such as Alipay and WeChat Pay, has made China a leader in cashless transactions.
In the fintech sector, digital payment platforms are providing financial services to millions of unbanked and underbanked individuals, promoting financial inclusion. Innovations in blockchain technology and digital currencies are also positioning China at the forefront of the global fintech landscape.
In the modern times, under President Xi Jinping, China has shifted from importing technology to a strategy based on self-reliance. Made in China 2025 initiative aims to transform China into a global leader in high-tech industries. Under the new industry policy, China encourages cutthroat competition, productivity/efficiency enhancements, costs reduction, quality improvements, waste/rework reduction, and manufacturing products for global consumers. The work culture promoted is described in “9.9.6” phrase that describes the corporate work ethic of working from 9:00 AM to 9:00 PM, six days a week. Its newly revised version is called “007” which means available 24/7. These efforts have positioned China as a major player in the global technology landscape with ambitions to achieve self-sufficiency, self-reliance, and commanding leadership in innovative technologies. By pursuing these strategies, China aims to build a robust and self-sufficient technological ecosystem that can drive sustainable economic growth and enhance its global competitiveness.
Conclusion: China’s dominance in modern technologies and industry segments is a continuation of its historical legacy of innovation. From AI and 5G technology to renewable energy and biotechnology, China is at the forefront of technological advancements that are shaping the future. The inventions of paper, gunpowder, the compass, and printing during the Tang and Song dynasties highlight China’s long-standing tradition of innovation and its enduring impact on global development. As China continues to invest in and develop innovative technologies, it is poised to remain a key player in the global technological landscape. The healthy competition will bring benefits to the consumers across the globe like we have seen currently in the consumers electronics, smart phones, ecommerce, digital payment system, solar energy, wind turbines, food delivery, rideshare, bikeshare, electric vehicles (EVs), driverless vehicles, highspeed rail, etc. In other words, for consumers, the technology race will bring dividends and cost savings that will benefit everyone and will continue to improve quality of life for the global citizens.
