How China plans to beat the U.S. at technology
President Trump has made technology a key battleground in U.S. relations with China.
He
launched an investigation into alleged Chinese theft of U.S. intellectual property earlier this year. But some experts say a bigger concern is Beijing's huge bets on the technologies of the future.
The Chinese government is throwing its weight behind sectors like artificial intelligence, electric cars and computer chips, pumping in money to create tech champions with global clout.
Western companies have already
raised concerns about the plans, warning they may give Chinese companies an unfair edge at home and abroad. Some analysts have
called for the U.S. to ramp up spending on technology research in order to keep pace.
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Russian President Vladimir Putin recently
predicted that whoever becomes the leader in artificial intelligence "will become the ruler of the world."
China wants to be that leader. It laid out
its plan this summer to become an artificial intelligence superpower by 2030.
The country's AI industry has "government support that most other countries don't really have," said John Choi, an analyst who covers Chinese internet companies for Daiwa Capital Markets. "The level of funding is not even comparable to most other nations."
The Chinese government's 2030 plan aims to build a domestic AI industry worth nearly $150 billion.
"China leads in the area for the simple reason -- it's a government push," said Chwee Kan Chua, global research lead for artificial intelligence with research firm IDC.
Electric cars
There's a reason why
Tesla (TSLA) is eager to
have a manufacturing plant in China. The country has the world's largest market for electric vehicles, thanks to years of generous tax credits and government subsidies.
China's efforts are yielding results for its homegrown industry. Domestic companies are among the leading makers of electric vehicles in the world, and Chinese consumers are increasingly interested in buying them.
Beijing is doubling down on the industry. The country's "Made in China 2025"
plan calls for domestically produced hybrid vehicles and electric cars to account for
at least 70% of total sales by 2025.
Major global automakers like
Volkswagen (VLKAF) and
Ford (F) have recently announced plans to develop electric cars in China with local partners, bringing their technological know-how into the country.
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