China is a country that has ruled the world many times in the past millennium. It is expected to repeat history again. The economic reforms introduced by Communist Party leader Deng Xiaoping in the late 1970s pushed China to become a country that is now considered worthy of challenging the United States. In 2017, PricewaterhouseCoopers [PwC] reported that by 2030, the Chinese economy will surpass the United States as the largest economy. China grew by an average of 10% per year between 1999 and 2008, and has been hovering in the range of 6-8% in recent years. With the recent advancement in technology, we may see digital growth and are expected to become the world's largest economy.
"China has long been one of the richest, most cultivated, hardworking, and most popular countries in the world." Quoted from Adam Smith's The Wealth of Nation . In fact, in the past few years, China has taken concrete steps to achieve this goal. In 2015, China announced "Made in China 2025", a strategic blueprint that details the necessary steps to innovate and transform the country through local technology and to make China the fourth industrial revolution. In 2017, China's total expenditure on research and development was 1.76 trillion yuan [US$279 billion], a year-on-year increase of 14%. In fact, a term appears to describe China's unique innovation policy and its ability to drive innovation and technological advancement within its own geographic boundaries. Known as "independent innovation", China has become the next world's innovation and technology capital. Here are some reasons why China can or, more precisely, destroy the United States in the next decade.
1. Scale problem. Whether it is geographical scale or population, China is a huge country. Although China and the United States have an area of 9.3 million square kilometers and 9.1 million square kilometers respectively, China has more than 1.4 billion citizens, more than four times the adoption rate of the United States and China. Technology and its closed ecosystem create a perfect environment for the growth and prosperity of Chinese companies. With more than 772 million Internet users, China is a data paradise. In addition, it is well known that Chinese citizens are more tolerant in sharing personal data, in stark contrast to Western countries that strictly enforce personal data policies and regulations. The recent Cambridge Analytica legend believes that Facebook's user data highlights the importance of keeping personal data private, but this is something we may never see in China. However, reports of emotional surveillance have been employed in military locations to monitor brainwaves in military locations, and state-owned enterprises seem to have crossed the recent efforts to monitor people.
2. The support of the Chinese government. China's "13th Five-Year Plan" [2016-2020] and "Made in China 2025" policies have fully demonstrated China's ambitious plans to become a world leader in technology leadership. Subsidies, low-interest loans and tax breaks are some of the supporting technology companies that are expected to be part of China's plans to promote domestic research and innovation. In addition,
The Chinese government has not allowed Western companies such as Google, Facebook and Twitter to thrive, but to foster domestic companies through protectionism and huge subsidies. Local technology giants such as Baidu, Alibaba and Tencent, often referred to as British American Tobacco, are able to grow up in a sheltered environment and have pies all over China. Since then, these companies have expanded overseas through acquisitions and the establishment of research and innovation centers, a move that many countries see as a blatant act of technology imports, namely technology transfer.
Finally, it is purely ignorance of China. In fact, many people who lack understanding of China today still consider it a "replicating cat" country that thrives in making counterfeit goods and "Made in China" products for the outside world. The truth is that they are now creating innovative leaders and are the best choice. A typical example is Shenzhen, which has developed into its own innovation center. Known as the hardware of China's Silicon Valley, Shenzhen has many companies that produce the technology products we see today, from drone manufacturer DJI to iPhone maker Foxconn. It has positioned itself as the hardware and IoT hub for many electronics manufacturers and is a hot spot for Chinese technology startups. Ignorance was once a happy life when people were free to enjoy the low cost of Chinese manufacturing; ignorance is now an imminent acquisition threat.
"China has a very deep understanding of the English-speaking world, but the opposite is true." Cited by Cosera's co-founder and one of the pioneers of artificial intelligence, Andrew Ng.
The future will be a technology-led future, and China is ready to be part of the future. President Xi Jinping knows the difficulties of maintaining China's economic growth and understands the potential of technology to expand into millions of companies, eliminating inefficiencies and benefiting end consumers.
However, it would be naive if we think that China is only surpassing the United States on superior technology. The possibility of a trade war between China and the United States is only beneficial to China because it has the advantages of economies of scale and a single independent market. The continued trade surplus with the United States indicates the US dependence on Chinese goods, and the trade war will only damage the rise in consumer prices. Due to the possible trade war, the trade surplus in the first quarter of 2018 soared nearly 20% to $58.25 billion. In addition, China has been expanding its economic and political influence through the Belt and Road Initiative [BRI]. BRI is estimated to cost more than $1 trillion, affecting 60% of the world's population. It is China's biggest cause since the Great Wall of China. All signs show that China has the capital, technology and influence to take over the world.
All in all, China has evolved from an inductive country to an innovative country, from producing products to inventing products. China is an elephant in this room, and Western counterparts have chosen to take it for granted for decades and ignore its rise. Maybe it's time for the world to take a good look at China. The irony is to copy what they are doing now. For the United States, cooperation may be the best and the only way forward.
Orignal From: China, innovative beast
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