HOW TECHNOLOGIES ARE DEVELOPING IN CHINA

Posted on

For the majority of Russians, the description of China is a listing of a set of clich├ęs that roam the minds. After talking with our compatriots, we can conclude that China is huge, unspeakably rich and strong in all areas. And if everything is so with the size of the country, population and wealth with a number of reservations, then one can argue with strength in each of the areas. China’s problem is that they once made a gigantic factory out of the country.

transferred production from Europe, America, and other parts of the world, including harmful ones. They used cheap labor to achieve a lower cost of goods, and at the same time did not share their know-how and technologies. We can say that China was used in the best traditions of the colonial practices of the XVIII century, adjusted for modern technology and its independence. It is clear that the Chinese leadership was not satisfied with the current situation, and the country gradually tried to develop in each of the directions, which ultimately led to the trade war that the Donald Trump administration launched about five years ago.

China is systematically building its economy, building up its skills in each of the areas. We can say that today China is a symbiosis of a planned economy with elements of a free market. The sandbox that the Chinese Communist Party allocates for business is quite free, but going beyond it is always quickly stopped, and money becomes the measure of influence. A vivid example is the story of billionaire Jack Ma (Alibaba), in 2018 he became a communist.

Two years later, he allowed himself to publicly criticize the Chinese authorities, economic policy, and the consequences were not long in coming – a lot of checks, the cancellation of the IPO for ANT Group, a drop in the capitalization of companies owned by him, and as a result, billions in fines. The record fine was $2.8 billion for Alibaba strangling competition, imposing onerous conditions on sellers on its platform.

China is aware of its weaknesses and builds the economy and, as a result, politics in such a way as to level them. Let me remind you that five-year plans still exist in China, the inhabitants of the USSR remember this sign of a planned economy. Such a measure of success, when the five-year plan had to be completed in three years, and then all kinds of bonuses and benefits rained down on the enterprise. In 2015.

in China for the thirteenth and fourteenth five-year plans, a new plan appears, which is called “Made in China 2025” (you can often find the abbreviation MIC2025). The documents describing the program are varied, but in short they can be reduced to a simple statement – China wants to stop being the world’s factory, shift the focus from labor intensive to high-tech products, create its own products and technologies. In addition, China plans to develop materials for domestic production, so by 2020 it was planned to reach 40% of materials for production, by 2025 – to raise this percentage to 70.

Electronics and component manufacturing is only part of the MIC2025 program, it is much broader and affects all sectors of the economy. In addition to direct investment, the program also has indirect incentives for growth – cheap loans for companies that invest in R&D, a reduction in the tax burden, and much more. Within the framework of development directions, promising areas have been identified where it is necessary to catch up and overtake America (this is very consonant with the Soviet person). I will list the main directions of development:

It is not necessary to list everything for a long time. By 2018, it became clear that the program was working and development was going full steam ahead. Therefore, in America, this program began to be considered a threat to national security (in general, it is natural if you imagine yourself a world leader and do not want the development of anyone other than yourself). The origins of the trade war, the attack on Huawei in 2019 and the attempt to destroy the world’s largest telecom company are exactly in this. Just as you can look at the subsequent sanctions for Chinese business, they went exactly according to the lists of the MIC2025 program, the Americans did not invent anything like that.

China’s approach has always been to grow huge champions, corporations that can become dominant in their niche market. The example of Huawei describes such a company well. The huge domestic market makes it possible to train inside the country before going outside with the product. And Huawei is not the only example of this kind, we can recall the drone manufacturer DJI, this company has no analogues in the world and has become a pioneer in its field.

What shows and clearly proves that in China they know how not only to copy something of someone else, although this practice is developed and honed to perfection. China has learned how to create its own technologies, which makes it such a dangerous player with formally unlimited resources, primarily human resources. It would be useful to remember how China invests in the education system, they churn out engineers and scientists like crazy and take their number, sometimes inferior in quality compared to other countries. They attract scientists from other countries, collect, like a vacuum cleaner, brains from all over the world, poach them with large salaries.