China
Chinese tech dominance more myth than reality
Author: Marina Yue Zhang, UTS
The Australian Strategic Policy Institute (ASPI) recently released a report asserting China’s dominance in ‘critical technologies’. The report claimed that much of China’s progress has come from elaborate high-level design and long-term policy planning. It also claimed that Western democracies are losing out in global technological competition and urged them to invest more in research and form closer collaborations to curb China’s dominant positions in those technologies.
Before action is taken, it is essential to make sense of China’s rise in critical technologies and separate fact from fiction.
Claiming that China’s lead in research outputs indicates its dominance in ‘critical technologies’ is a case of equivocation. Research output does not necessarily reflect technological innovation capability. China has undeniably made significant progress in research output over the past two decades, mainly due to substantial funding from the central government for leading universities and research institutes based on a ranking-driven model.
But this model has prompted researchers to prioritise short-term incentives over long-term knowledge inquiry, which is driven by academic curiosity but accompanied by high uncertainty and risk. China has pursued the path of Western technological forerunners by imitating, assimilating and replicating existing scientific research. Once Chinese scientists reach the technological frontier, they must adjust their strategy to engage in cutting-edge and future-defining research.
When it comes to research outputs, the scale of inputs plays a significant role. In 2022, China’s total number of research and development (R&D) personnel surpassed five million person-years, creating the world’s largest scientific and technological talent pool. When accounting for purchasing power, Chinese researchers, except for top scientists, are generally less expensive than the OECD average. China has nearly double the number of full-time researchers, equivalent to the combined total of the United States and the European Union. It is not surprising to see China making strides in research output.
Yet research quantity does not always equate to quality. ASPI’s technology tracking offers aggregate comparisons across countries and technological fields, but it doesn’t capture accurate measurements of research quality. This is because its rankings of a country’s position in a specific technological field are based on publication citations. Although ASPI’s report asserts that self-citations are legitimate, citation-based indicators give large organisations a noticeable advantage in publication impacts when self-citations are included.
Another limitation of ASPI’s rankings is the insufficient weighting of journal and author influences in research, which could downplay those who conduct groundbreaking and future-defining research. When using bibliometric analytical methods such as co-citation and co-occurrence analyses, the United States outpaces China by a significant margin in many scientific fields.
Building technological innovation is a gradual and cumulative process driven by industrial R&D. China has a relatively short history of industrial innovation, which is path-dependent. For this reason, China has few advantages in established industries such as semiconductors and pharmaceuticals, where Western incumbents hold ‘patent thickets’ that curb China’s catch-up. While China contributed 27.5 per cent to total global R&D expenditures in 2022 against the United States’ 35.6 per cent, US technology giants still dominate research and innovation in critical technologies such as artificial intelligence.
Unlike the United States, China’s research and innovation progress occurs on different tracks. A conundrum has raised concerns among policymakers — while the research community celebrates breakthroughs in publication quantity, industries face many ‘chokepoints’ in critical technology supply chains.
Less than four per cent of China’s research outputs from universities have been translated into industrial innovation capabilities — much lower than in most industrial countries. Building a bridge between China’s research and innovation has become a policy priority.
Finally, the notion that China’s industrial policy plays a critical role in its research and innovation is a myth. China does not have a single industrial policy — instead, it has numerous policies that lead to intra-governmental competition, resulting in duplicated…
Business
Gordonstoun Severs Connections with Business Led by Individual Accused of Espionage for China
Gordonstoun school severed ties with Hampton Group over espionage allegations against chairman Yang Tengbo. He denies involvement and claims to be a victim of political tensions between the UK and China.
Allegations Lead to School’s Decision
Gordonstoun School in Moray has cut ties with Hampton Group International after serious allegations surfaced regarding its chairman, Yang Tengbo, who is accused of being a spy for the Chinese government. Known by the alias "H6," Mr. Tengbo was involved in a deal that aimed to establish five new schools in China affiliated with Gordonstoun. However, the recent allegations compelled the school to terminate their agreement.
Public Denial and Legal Action
In response to the spying claims, Mr. Tengbo publicly revealed his identity, asserting that he has committed no wrongdoing. A close associate of Prince Andrew and a former Gordonstoun student himself, Mr. Tengbo has strenuously denied the accusations, stating that he is a target of the escalating tensions between the UK and China. He has claimed that his mistreatment is politically motivated.
Immigration Challenges and Legal Responses
Yang Tengbo, also known as Chris Yang, has faced additional challenges regarding his immigration status in the UK. After losing an appeal against a ban enacted last year, he reiterated his innocence, condemning media speculation while emphasizing his commitment to clear his name. Gordonstoun, on its part, stated its inability to divulge further details due to legal constraints.
Source : Gordonstoun cuts ties with business chaired by man accused of spying for China
Business
China Dismantles Prominent Uyghur Business Landmark in Xinjiang – Shia Waves
The Chinese government demolished the Rebiya Kadeer Trade Center in Xinjiang, affecting Uyghur culture and commerce, prompting criticism from activists amid concerns over cultural erasure and human rights violations.
Demolition of a Cultural Landmark
The Chinese government recently demolished the Rebiya Kadeer Trade Center in Urumqi, Xinjiang, a vital hub for Uyghur culture and commerce, as reported by VOA. This center, once inhabited by more than 800 predominantly Uyghur-owned businesses, has been deserted since 2009. Authorities forcibly ordered local business owners to vacate the premises before proceeding with the demolition, which took place without any public notice.
Condemnation from Activists
Uyghur rights activists have condemned this demolition, perceiving it as part of China’s broader strategy to undermine Uyghur identity and heritage. The event has sparked heightened international concern regarding China’s policies in Xinjiang, which have been characterized by allegations of mass detentions and cultural suppression, prompting claims of crimes against humanity.
Rebiya Kadeer’s Response
Rebiya Kadeer, the center’s namesake and a notable Uyghur rights advocate, criticized the demolition as a deliberate attempt to erase her legacy. Kadeer, who has been living in exile in the U.S. since her release from imprisonment in 2005, continues to advocate for Uyghur rights. She has expressed that her family members have suffered persecution due to her activism, while the Chinese government has yet to comment on the legal ramifications of the demolition.
Source : China Demolishes Uyghur Business Landmark in Xinjiang – Shia Waves
China
China Expands Nationwide Private Pension Scheme After Two-Year Pilot Program
China’s private pension scheme, previously piloted in 36 cities, will roll out nationwide on December 15, 2024, enabling workers to open tax-deferred accounts. The initiative aims to enhance retirement savings, address aging population challenges, and stimulate financial sector growth.
After a two-year pilot program, China has officially expanded its private pension scheme nationwide. Starting December 15, 2024, workers covered by urban employee basic pension insurance or urban-rural resident basic pension insurance across the country can participate in this supplementary pension scheme. This nationwide rollout represents a significant milestone in China’s efforts to build a comprehensive pension system, addressing the challenges of a rapidly aging population.
On December 12, 2024, the Ministry of Human Resources and Social Security, together with four other departments including the Ministry of Finance, the State Taxation Administration, the Financial Regulatory Administration, and the China Securities Regulatory Commission, announced the nationwide implementation of China’s private pension scheme effective December 15, 2024. The initiative extends eligibility to all workers enrolled in urban employee basic pension insurance or urban-rural resident basic pension insurance.
A notable development is the expansion of tax incentives for private pensions, previously limited to pilot cities, to a national scale. Participants can now enjoy these benefits across China, with government agencies collaborating to ensure seamless implementation and to encourage broad participation through these enhanced incentives.
China first introduced its private pension scheme in November 2022 as a pilot program covering 36 cities and regions, including major hubs like Beijing, Shanghai, Guangzhou, Xi’an, and Chengdu. Under the program, individuals were allowed to open tax-deferred private pension accounts, contributing up to RMB 12,000 (approximately $1,654) annually to invest in a range of retirement products such as bank deposits, mutual funds, commercial pension insurance, and wealth management products.
Read more about China’s private pension pilot program launched two years ago: China Officially Launches New Private Pension Scheme – Who Can Take Part?
The nationwide implementation underscores the Chinese government’s commitment to addressing demographic challenges and promoting economic resilience. By providing tax advantages and expanding access, the scheme aims to incentivize long-term savings and foster greater participation in personal retirement planning.
The reform is expected to catalyze growth in China’s financial and insurance sectors while offering individuals a reliable mechanism to enhance their retirement security.
| This article was first published by China Briefing , which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in China, Hong Kong, Vietnam, Singapore, and India . Readers may write to info@dezshira.com for more support. |
Read the rest of the original article.
- Gordonstoun Severs Connections with Business Led by Individual Accused of Espionage for China
- China Dismantles Prominent Uyghur Business Landmark in Xinjiang – Shia Waves
- China Expands Nationwide Private Pension Scheme After Two-Year Pilot Program
- How a scandal over sanitary pads is shaping feminist activism in China
- Yakult Unveils Restructuring Plans for Its China Operations | ESM Magazine
- Italy’s Strategic Shift Towards China After Exiting the Belt and Road Initiative