China's Direct State Funding to Innovation is Working Better than Capital Market led Innovation in USA

02-March-2025 by east is rising 34

China has edge over US on MUCH MORE than just AI language models

The shock release of a new Chinese AI model known as DeepSeek that’s cheaper, faster and open source sent shockwaves across Silicon Valley, wiping out $1 trln off tech stocks and prompting pundits to dub the new tech a “Sputnik moment” for the US.

But actually, China now dominates the US in 57 of 64 critical technologies, up from just three in 2007, a comprehensive, 20-year 2024 study by the Australian Strategic Policy Institute (ASPI) has calculated.

The US, which led in 60 sectors in 2007, now leads in just seven.

Rankings are based on cumulative innovative and high-impact research and patents.

 Where does China excel?

advanced integrated circuit design and fabrication

high-specification machining processes

advanced aircraft engines

drones, swarming and collaborative robots

electric batteries

photovoltaics

advanced radiofrequency communication

Where is US leading?

natural language processing

quantum computing

genetic engineering

China's winning strategy

ASPI credits President Xi Jinping’s ‘Made in China 2025’ plan for the infusion of “massive direct state funding for R&D in key technology,” saying strategic investments already underway were turned into a plan to achieve “technological supremacy.”

Besides research spending, Xi’s strategy has seen “large and complimentary investments…into industrial policy, upgrading supply chains and the manufacturing sector.”

From @SputnikInt

Author: Saikat Bhattacharya


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