Abstract China recognizes that scientific and technological competitiveness will be an important pillar for the establishment of a superpower status. Therefore, it has stepped up its investment and assistance, and has begun to restructure its industrial policies. China’s efforts to become a global high-tech superpower are actually Tim Burns (TimBy...
China recognizes that scientific and technological competitiveness will be an important pillar for laying the status of a superpower. Therefore, it has stepped up its investment and assistance, and has begun to restructure its industrial policies. 
Burns said: "China's quantum physics is very strong. The first-class team there is the best anywhere in the world... they are doing some great things."
Dealogic's data shows that in the past two years alone, China has announced technology mergers and acquisitions worth more than $110 billion – some people are worried about the security of their country because of the role of the Chinese government in certain transactions. Robert Atkinson, president of the Information Technology and Innovation Foundation, told the US Congress in January that the "Made in China 2025" program is "an unscrupulous radical strategy, including a series of The manipulation of the market, the willingness to steal US technology, and the use of coercion to make the owner sell these technologies."
China introduced the army and naval modernization policies to catch up with the United States and Russia. The government-sponsored science and technology projects were born out of this. Now they tend to use civilians in an effort to make China at the forefront of artificial intelligence, biopharmaceuticals and electric vehicles.
Chinese President Xi Jinping set the targets for these expenditures last year and called technology the "main battlefield of the economy." The National People’s Congress held this month further emphasized these priority development goals.
If the plan is successful, it may mark a major shift from China's economy, known for making cottage products, to an economy that is globally advanced. China is now in its infancy. China's technology giants Baidu, Alibaba and Tencent are collectively known as "BAT" (the Chinese acronym for the names of the three major Internet groups in China is BAT, and in English it is "bat" They reinforce the patterns of learning from Google, eBay, and Facebook, but their goal of building a national champion in semiconductor and artificial intelligence represents a much larger step. The Mercator Institute for China Studies in Berlin described the "Made in China 2025" program as "the cornerstone of a comprehensive political plan" last year, adding that "in the long run, China wants to control global supply." The most profitable link in the chain and production network."
Xi Jinping made the above appeal and showed that he realized that technological competitiveness, like economic strength and sovereign strength, is one of the three pillars of any modern superpower to support its position. What made this task even more difficult was the slowdown in domestic economic growth and fears that the rebalancing of the investment-led economy to the consumption-led economy was not convincing.
Atkinson told Congress: "From semiconductor to e-commerce, Xi Jinping unabashedly declared the goal of letting China 'master its own technology.'"
The "Made in China 2025" launched two years ago is one of a series of plans aimed at advancing China's scientific and technological goals. Drawing on Germany's “Industry 4.0†project, China outlines a blueprint for transforming manufacturing from China's world-famous low-end labor-intensive to smart technology era – a shift that is even more significant as labor costs rise. The plan proposes to use large data, cloud computing and robotics technology to achieve large-scale automation of industrial production. The goal is to increase the localization rate of China's core infrastructure components to 70% by 2025 – the current localization rate is between zero and 30. %between.
China has done this in some areas before. China, which is irritated by the fact that semiconductor import costs are higher than oil import fees, has invested $150 billion in the development of the semiconductor industry since 2014 through mergers and acquisitions and domestic subsidies. It also injects large sums of money into domestic champion companies headed by Semiconductor Manufacturing International Corporation, and encourages multinational companies such as Intel and Qualcomm to set up factories in China.
China’s stride forward has sparked some controversy. Regulators (especially the Committee on Foreign Investment in the United States (CFIUS) have rejected multiple Chinese transactions due to national security concerns. For example, last year, the Chinese consortium's $3 billion bid to acquire the Dutch group Philips' US lighting business was defeated by the US Foreign Investment Committee. In Europe, the German chip equipment manufacturer Aixtron sold to Chinese investors for 670 million euros was also blocked by regulators.
Most experts predict that China's acquisition of overseas technology assets will face a more rigorous review in the future.
However, as more and more Chinese companies open R&D centers or small business branches in the US and other markets, this may no longer be a problem. Dan Roules, managing partner of Squire Patton Boggs in Shanghai, said that these local branches may be used as acquisition channels, and the reasons for national security are no longer valid.
Ruhrs said: "If a foreign company that has been doing business for many years in the US is now acquiring a technology company, I am not sure that the US Foreign Investment Committee will conduct more rigorous reviews, and I don't know how much people will worry." He added that China The business of the company has a long-term vision.
If semiconductors represent China's boldest move in shaping the technology industry, then the government's influence can be found in other private industries. Baidu, Alibaba and Tencent are listed overseas, with a total market capitalization of around $600 billion. They have been working with the government on a number of projects.
Last year, the National Development and Reform Commission (NDRC), which is responsible for developing economic and social strategies, announced that China will build 19 national data labs, most of which are located at the University, as part of the China Manufacturing 2025 program. Alibaba's cloud business will be involved in the construction of two laboratories: the first will examine online data mining and cloud computing in the industrial sector; the other will build a platform for big data software.
“China has been leveraging global business and science networks to promote technology transfer, foreign R&D investment, and training Chinese scientists and engineers overseas,†Assistant Professor of Rancy South International Research Institute (RSIS) at Nanyang Technological University, Singapore. According to Michael Raska, “The basic strategy behind this effort has become the concept of 'independent innovation': discovering, digesting, absorbing and transforming outstanding foreign technology in the civilian and military fields.â€
"The United States is the birthplace of information technology, the Internet, and the civil and military information revolution," John Costello, senior analyst at intelligence firm Flashpoint, told Congress recently. "China's rise has become a quantum and related emerging technology field. The leader will mark the transfer of the Innovation Center to the East."
Western view: traditional innovation centers are shocked
China’s ambition has caused fear and disgust in Europe and the United States. In Europe and the United States, once the technology leader saw that a country that not only has strong funds, but is also concentrating its powerful forces to develop its scientific and technological strength is impacting their position.
Their fears come from two sources: their national security may be undermined, and subsidies give Chinese companies an unfair competitive advantage. Multinational companies in the semiconductor and other fields that want to do business in China often face a “Faustian pact†– in exchange for technology transfer in exchange for market access.
In January, the Council of Advisors on Science and Technology said to the already skeptical White House that Beijing’s policies “distort the market, which distort innovation, reduce US market share, and The national security of the United States is at risk."
Earlier this month, the EU Chamber of Commerce in China in Beijing released a detailed report criticizing the Made in China 2025 program and the potential impact on multinational companies. Jörg Wuttke, chairman of the European Union Chamber of Commerce in China, said the plan was unusual because it set precise targets for both domestic and international market share. This has caused the following global concern: “Chinese companies with “doping†will inundate those lucrative areas with Chinese manufacturing, just as it has happened in the low-end manufacturing sector like steel in the past 20 years.
China denied the above statement in a government work report, saying: foreign companies will enjoy the same treatment as domestic investment in patent applications, standards development, government procurement, etc., and the preferential policies in the "Made in China 2025" plan will also be Applicable to foreign companies.
Companies also defended government support. At the National People's Congress meeting held this month, Baidu CEO Li Yanhong said that government support is "very necessary and very important."
But even those who criticize China’s policies have pointed out that blockades of exports or transactions may have unintended consequences. Addison Snell, CEO of Intersect 360 Research, cited examples of export restrictions on some processor technologies, including Intel processors for Chinese supercomputer upgrades. He said that during this period, China developed its own processor. "It is certain that the US export control may no longer obstruct China's plans."
Translator / He Li
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