In 2023, China has solidified its position as a dominant force in global technology and innovation. Filing a staggering 1.7 million patents, China outpaced the United States' 600,000, marking a significant shift in the balance of technological power. This surge is not just in quantity but also in quality, as China now surpasses the US in "citation-weighted" patents, indicating a higher impact of its scientific contributions. The US National Science Board acknowledges China's ascendancy, recognizing it as the world's leading science and engineering nation. This monumental advancement is attributed to China's strategic focus on education, innovation, and leveraging data-driven advancements.
China's educational institutions have become prolific producers of STEM PhDs, with over 6,000 graduates each month. This robust talent pipeline feeds into the nation's innovation ecosystem, driving unprecedented growth in clean technology. China now accounts for three-quarters of all clean tech patent filings, a leap from just a twentieth at the start of the century. This surge is mirrored in the electric vehicle (EV) market, where China stands as the world's largest exporter. Its mastery over battery technology has driven costs of lithium-ion electric batteries to about a seventh of what they were a decade ago.
The artificial intelligence (AI) sector also reflects China's technological prowess. The nation leads in AI patents and academic publications, surpassing the United States. China's rapid advancements in AI are facilitated by its access to vast amounts of data, a resource more challenging to harness in Western countries. The US National Science Board notes:
"We already see this in artificial intelligence, where China out publishes us, has more patents, and produces more students than the United States."
Furthermore, China's consumer electronics giants are diversifying into car manufacturing, employing AI-powered robots to operate "dark factories" around the clock. This integration of AI into manufacturing underscores China's commitment to electrification and innovation, earning it the moniker of an "electro state" by some researchers.
China's technological success is not solely due to innovation but also its strategic supply chain management. Despite lacking indigenous fossil fuels, China has adeptly positioned itself as a global leader in clean tech industries. This strategic positioning gives China a significant edge over other nations and reshapes global technological landscapes.
Access to extraordinary amounts of data has been pivotal in China's technological ascent. This advantage allows for rapid development and deployment of new technologies, impacting industries worldwide. The UK Chancellor's recent visit to Beijing highlights the significance of China's technological impact, as nations seek deeper economic cooperation with the Asian giant.