Main article: Economy of China
2024: China achieves global leadership in several high-tech industries and prepares for leadership in others
2023
Research and development spending in China rose to 2.65% of the country's GDP
In 2023, total spending China on research and development (R&D) reached 3.34 trillion yuan (about $0.5 trillion). Such data were disclosed on October 25, 2024 by the State Statistical Office of the PRC.
China actively develops its own scientific sphere, trying to reduce dependence on foreign developments and technologies under the conditions of sanctions from the outside. USA In 2023, the total spending of the PRC on R&D amounted to 2.65% of the GDP country. For comparison, a year earlier this indicator was estimated at 2.54%.
China's investments in basic research in 2023 were recorded at 225.91 billion yuan (about $31.66 billion), which is 11.6% more compared to the previous year. Significant achievements have been demonstrated in areas such as quantum technologies, integrated circuits, artificial intelligence and biomedicine. Applied research accounted for 366.15 billion yuan ($51.32 billion) with an increase of 5.1% compared to 2022. The largest amount of funds is directed to experimental development - 2.74 trillion yuan ($384.04 billion), which corresponds to an increase of 8.5% on an annualized basis. Thus, this area accounted for 82.2% of the total R&D costs.
Spending on research and development in the corporate sector of the PRC at the end of 2023 was recorded at 2.59 trillion yuan ($363.02 billion), or 77.7% of the total. Year-on-year growth was about 8.6%. Another 385.63 billion yuan ($54.05 billion) fell on government research institutions, 275.33 billion yuan ($38.59 billion) - on higher education structures. Costs in all other industries combined in 2023 are estimated at 82.53 billion yuan ($11.57 billion).[1]
China is 6 times ahead of the United States in the number of patents for generative AI
In the period from 2014 to 2023, about 54 thousand patent applications for technologies related to generative artificial intelligence (GENI) were filed on a global scale. Moreover, China leads in the number of patents in the field under consideration, six times ahead of the United States. Such data are provided in the report of the World Intellectual Property Organization (WIPO), published on July 3, 2024. Read more here.
R&D spending up 8.1% to $458.95 billion
In 2023, China's spending on research and development exceeded 3.3 trillion yuan, or $458.95 billion (at the exchange rate as of March 13, 2024). This is 8.1% more compared to costs in 2022. Such data on March 5, 2024 was published by the State Council of the PRC.
Chinese Minister of Science and Technology Yin Hejun said that spending on basic research in 2023 reached 221.2 billion yuan ($30.76 billion). Growth compared to the previous year was recorded at 9.3%. In 2023, approximately 950 thousand contracts in the technology sector were signed in China. The number of registered patents for inventions reached 921 thousand, which is 15.3% more than a year earlier.
 | Scientific and technical innovations not only increase the competitiveness of existing industries in the country, but also lay a solid foundation and give impetus to the development of new directions, says Hedgun. |  |
It is noted that during 2023, China demonstrated significant achievements in the field of quantum technologies, integrated circuits, artificial intelligence, biomedicine and new power. In particular, in December 2023, the world's first fourth-generation Shidaovan nuclear power plant was launched in China, and in May the Chinese C919 aircraft (a narrow-body medium-haul passenger liner) made its first commercial flight.
It is also said that China pays great attention to supporting young specialists. Young people "have the greatest potential for innovation," Hedjun stated. In 2024, the PRC government plans to increase R&D spending by another 10%. The country is taking various measures to reduce dependence on foreign technology in light of tough sanctions from the United States.[2]
China beats EU on R&D investment
At the end of 2022, the 2,500 largest companies in the world spent approximately €1.25 trillion on research and development (R&D), which is a new record. This is €141 billion more than the previous year. At the same time, in terms of R&D investments, China was able to bypass the European Union and reach second place in the global ranking, second only to the United States. Such data are given in the report of the European Commission, published on December 14, 2023. Read more here.
Top 15 technology trends in China named
The Institute for Statistical Research and Knowledge Economics HSE mining big data using the iFORA system analyzed the current Chinese agenda MEDIA and identified the most promising ones digital technologies that could radically change the way of life in the Celestial Empire in the near future. On September 21, 2023, representatives of the Higher School of Economics shared the results of their study with. TAdviser
The digital economy is a driver of China's economic development. From 2012 to 2021, the average growth rate was 15.9%, and the share in the country's GDP increased from 21.6 (2012) to 41.5% (2022) and reached 50.2 trillion yuan (662.3 trillion rubles at the exchange rate of the Central Bank of the Russian Federation as of September 15, 2023). As the analysis of big data showed, China relies on radical changes in all spheres of life due to the intensive introduction of digital, communication and latest production technologies (Table 1).
As ISIEZ HSE found out, a group of advanced technologies is developing at a faster pace, supporting the digital transformation of industry and, in particular, the production of new materials (No. 1). It is expected that by 2025 the volume of this market will reach 10 trillion yuan (about 131.9 trillion rubles).
"Black gold" in this area is considered carbon fiber (the use of structural parts made from composite materials based on it can reduce the structural weight of the product by 30-40%). Since 2014, demand for it in China has been growing by 13% per year. The largest carbon fiber production base in the world as of September 2023 (with a production capacity of up to 25 thousand tons/year) is operated in the city of Xining, the administrative center of Qinghai province in the north-west of the PRC. This material is especially in demand in the field of 3D printing ( No. 8), is actively used in the Chinese industry, including aerospace. So, in 2020, the Chinese Academy of Space Technologies for the first time carried out orbital 3D printing using continuous polymer composites reinforced with carbon fiber.
A separate direction is the interface between the industrial Internet of Things (No. 2) and the next generation 5G communication networks (No. 3). The number of projects launched under the concept of "5G + industrial Internet," according to the Ministry of Industry and Information Technology of China, in 2022 exceeded 4,000 (in 2021 - more than 1800). Thus, in June 2022, China's first intelligent oil refinery was commissioned in Huizhou (Guangdong province), where the level of automated collection of production data was brought to 98%, which, according to preliminary estimates, reduced the cost of monitoring oil refining processes by almost a third, and the number of production accidents - by 80%. In the same province, the first intellectual port of Mawan began work in China, the example of which is notable for the fact that the bundle of industrial Internet and 5G allowed its owners to abandon the services of 93 operators and reduce carbon emissions by more than 90%. In Sichuan province, the Tingzikou hydroelectric power station is successfully operating, where the water level is monitored by underwater robots. The work that divers previously performed from three to six months and which cost 5 million yuan (about 65.97 million rubles), robots do in 20 days, additionally removing sludge, thereby reducing costs by another 700 thousand yuan (about 9.2 million rubles).
In some projects, within the framework of the concept of "5G + industrial Internet" visualization processes in real time, it also provides for the use of technologies added and (virtual reality No. 7) and peripheral (cloud platforms No. 11). In the first quarter of 2022, investments in the creation of cloud infrastructure in China increased by 21% compared to the same period last year, and about 80% of investments come from national IT giants: 36.7% of investments were provided by the company, 18% Alibaba Cloud-, 15.7 Huawei Cloud% - Cloud, Tencent 8.4% - Cloud. Baidu AI
Against the background of increased competition with Taiwan and the United States, China is increasing the production of AI chips (No. 9), including their share in the AI industry, noted in the ISIEZ HSE. According to the Next Generation Artificial Intelligence Development Plan in China, by 2025 the total AI market volume will reach 400 billion yuan (about 5.3 trillion rubles), of which the market volume of chips and related technologies will be about 174 billion yuan (about 2.3 trillion rubles).
An important area is related to the development of communication and management technologies based on big data processing (No. 5). According to experts, this market in 2021 in China grew by almost 30% compared to the previous year, reaching 639 billion yuan (about 8.4 trillion rubles). According to the IDC forecast, by 2025 China in terms of big data will come out on top in the world (with a share of 27.8% of the global). Its investments in data centers and related automation and remote control technologies (No. 6) will grow by more than 20% annually during the implementation of the 14th five-year plan (2021-2025), and total investments in related areas may exceed 3 trillion yuan (about 39.6 trillion rubles).
Big data determines not only the pace of digital transformation of industry, but also the dynamics of the development of regions in which large production is based. According to ISIEZ HSE, this clearly illustrates the example of a comprehensive experimental zone of national big data located in Guiyang (Guizhou province). Thanks to the amount of data analyzed, this province for six years in a row (from 2016 to 2021) ranked first in China in terms of the growth rate of the digital economy. At the end of 2021, the added value of the region's digital economy exceeded 650 billion yuan (8.6 trillion rubles), providing 34% of regional GDP.
Such a phenomenon as "Taobao villages" is widely countries known - commercial hubs located mainly in rural regions that ensure the sale of products through trade the company's platforms. Alibaba Against the background of the gigantic scale so organized in these villages, Internet trade technologies (No. 4 blockchain) are of particular importance, which, among other things, guarantee safety electronic transactions.
The Chinese authorities are actively campaigning to promote the digital yuan (e-CNY) as a means of payment (No. 14). In 2021, this opportunity was available in 23 cities, including the megacities Shanghai, Beijing and Shenzhen, in 2022 - already in 26 cities located in 17 provinces of the PRC. As of August 2022, with the help of the digital yuan, more than 360 million transactions totaling 100 billion yuan (about 1.3 trillion rubles) were made in the country. To pay for goods and services with it, you need to register through one of seven traditional or two online banks. The latest means of communication (No. 12) also contribute to the spread of e-CNY: for example, WeChat users (an application from Tencent) can pay for various goods and services using the digital yuan. In 2022, the beta version of the digital yuan application for iOS and Android was officially launched in Chinese app stores.
Digital technologies also improve the quality of services provided to the population: for example, during the COVID-19 pandemic, the demand for telemedicine services (No. 10) increased significantly, including appointment with a doctor via the Internet and remote examination via a smartphone. By 2025, it is expected that the volume of this industry in China will amount to $54.2 billion (about 5.21 trillion rubles). Very popular, especially among young people, was the use of chat bots for self-diagnosis (No. 13).
One of the world's largest and dynamically growing video game market in China is a significant consumer of digital innovation and its driver. Leaders in the gaming and online entertainment sector (for example, Tencent Corporation) are transforming the user experience of players using the latest digital technologies. Thanks to 5G communication networks, users gain access to gaming platforms that allow the use of next-generation liquid crystal displays (No. 15), superior to all existing display technologies, the HSE concluded.
| | Digitalization has become an important driver of the economic strengthening of the PRC, and now its tools are integrated into many aspects of society. From the "Made in China" development model, the country moves on to the "Created in China" concept, and this vector is determined not so much by quantitative as qualitative characteristics, taking into account the need to take into account the priorities for the development of society and the needs of citizens, - said Inga Ivanova, researcher at the Center for Scientific, Technical, Innovative and Information Policy of the Higher School of Economics. – [...] Universities and research institutes of the country [...] conduct advanced technological research, nurture young personnel. Accelerating the evolution of the digital economy is of great importance for achieving the goals of the industrial revolution 4.0, China's innovative, economic and social development.[3] | |
Rivalry with the United States in terms of R&D investment
Some conflicts are a priori intractable. The United States and China have never reached a consensus in trade disputes, they have not reached a consensus in political confrontation, because we are talking about global leadership, the Spydell Finance channel noted.
World leadership in the modern world is achieved through two main directions - the projection of the value system and technological development, which is the basis for financial and economic superiority and geopolitical dominance.
Socio-cultural expansion China into the Western world is impossible due to fundamentally different cultures and value systems, and the struggle for sales markets and technological superiority is possible.
The conflict between the United States and China is a multifaceted, complex complex of contradictions that lies in the plane of the battle for economic and trade leadership.
The winner is the one with the best technology. Not only in innovative industries at the junction of the fifth and sixth techno-structure, but even the advanced development of basic industries from the third and fourth technological structure is important and important.
For too long, the United States has parasitized its own success after a deafening victory in the Cold War with the USSR and a successful globalization project. During this time, China has significantly grown stronger and has acquired subjectivity in the formation of techno-trends.
In the mid-1990s, comprehensive spending on research and development by business and the state in all areas amounted to no more than $5 billion, compared with 200 billion in the United States.
In the early 2000s, China increased spending to 10-15 billion against 270 billion in the United States. By the world crisis of 2009, China spent about 75 billion on R&D, and the United States over 400 billion.
In 2015-2018, China's rapid and uncontrolled expansion began to create problems in the political and business elite of the United States, because they first realized the scale of China and the threat to US technological leadership.
By 2018, China's R&D was 300 billion, and in the United States $615 billion, in 2023 China almost doubled spending, and in the United States 877 billion.
The United States has significantly increased spending since 2017, but this is not enough. China's PPP-enabled R&D is far ahead of the US.
By the beginning of 2023, Western countries (mainly a list of countries unfriendly to Russia) are concentrating over 85% of all world technologies and innovative solutions in terms of output in monetary terms in the segment of knowledge-intensive industries with unique intellectual property.
These calculations assume that plants built in third countries, for example Asia , in or Eastern, To Europe but producing products under the brand and technological solutions of Western countries are considered as technologies and products controlled by the West. Outsourced programmers in order India IT giants from USA are technologies from the United States.
About 10-11% controls China and, accordingly, 4-5% of all other countries (South America, Asia except China, Africa, the Middle East and Eastern Europe). Technological dominance and Western leadership are undeniable.
Scientific articles, scientific literature, all major patents, ready-made technological solutions that generate income are somehow controlled by the collective West.
China has made an incredible breakthrough over the past 20 years, and it is doing it on a scale. At face value, research and development spending has grown more than 100 times from $5 billion to $600 billion, and given purchasing power parity, China outperformed the United States in 2018-2019.
Relative to GDP, China has increased spending on technology creation from 0.5% to 2.7-2.8% of GDP at the moment with an upward trajectory. In 2009, China was ahead of Britain, in 2020 it was ahead of the Eurozone countries in terms of the burden on the economy to create innovative solutions. Now China invests in R&D as much as the United States on average from 1996 to 2010 as% of GDP.
The United States relaxed too much and parasitized for a long time on its undeniable technological dominance, where in 2016-2017 it became clear that the pace of China's development was so high that it allowed the United States to be crowded in its own clearing. Since 2017, the United States has begun to sharply increase spending on R&D, reaching an all-time high in 2022.
Technology has an accumulation effect, and China has built a solid base over the past 20 years.
2022
China overtakes the United States in the number of scientists in the field of AI
At the end of 2022, China accounted for approximately 38% of the leading researchers in the field of artificial intelligence working in American institutions. For comparison, in the United States, this figure is estimated at 37%. In 2019, the values were 27% and 31%, respectively. Such figures are given in a study by MacroPolo, the results of which were published in early March 2024. Read more here.
China bypasses US in advanced technology research
In 2022, China came forward in the fight against the United States in the field of the emergence of new technologies. Chinese companies have taken the lead in 37 of 44 new technology industries. This was announced by the Strategic Policy Institute in Australia on March 2, 2023.
According to the report, the Chinese Academy of Sciences ranks first and second in the field of research in the field of 44 types of technologies, which are monitored by ASPI specialists. Including in the field of defense, space, robotics, power, environment, biotechnology, artificial intelligence, advanced materials and quantum technologies. According to ASPI, all 10 of the best research institutes in the world are based in China.
For its research, ASPI tracked the most cited scientific work that could lead to patent registration. Thus, there is an unexpected breakthrough of China in the field of creating hypersonic missiles in 2021. Since 2018, China has conducted 48.49% of the world's highly efficient research work on advanced aircraft engines, including hypersonic ones. ASPI noted the risk that in the field of photon sensors and quantum communications, China's research power could lead to its ability to monitor Western intelligence, including the UK, US, Australia, Canada and New Zealand.
The PRC also made great strides in the development of hypersonic missiles, quantum communications and photon sensors. Researchers believe that thanks to them, China will easily be able to get away from spying on the special services of Western countries. According to ASPI, China is increasing research with the help of knowledge gained abroad - a fifth of the leading Chinese specialists studied in countries that are members of the NATO military-political alliance.
China, according to ASPI, will become a monopoly in 10 areas, including synthetic biology, where the PRC produces a third of all research, as well as electric batteries, 5G and nanofabrication. Despite the surrender of a number of positions, the United States for 2022 holds the leadership in the field of research in the field of high-performance and quantum computing, small satellites and medical vaccines.
The ASPI study recommends visa screening programs in democracies to limit illegal technology transfers and instead favor international cooperation with security allies.[4]
2021
China's public companies increase R&D spending 10 times in 8 years
China provided the most significant jump in research and development spending among global public companies from 2013 to 2021, increasing investment by almost 10 times.
The European Commission conducts an annual study "The Economics of Industrial Research & Innovation (IRI)" as part of an assessment of corporate sector R&D for economic progress. The sample is carried out on 2500 largest global companies with a comparable R&D accounting methodology, which allows for cross-country comparison.
R&D data may differ from corporate reports due to the peculiarities of cross-country comparison, but here it is more value in assessing proportions and trends, and not in accurate data on R&D spending, Spydell Finance wrote.
Global R&D spending in 2021 amounted to €1.1 trillion among the leading 2,500 companies (government spending and the non-public sector are not taken into account), with 10 countries providing over 93% of global spending:
- USA - €440 billion,
- China - €196 billion,
- Japan - €114 billion,
- Germany - €91 billion,
- Switzerland - €35 billion,
- South Korea - €34 billion,
- Britain - €33 billion,
- France - €29 billion,
- Taiwan - €25 billion,
- Netherlands - €24 billion
Countries that are not among the 10 largest have expenses of about €74 billion, which is only 35% higher than the level of 2013 at par. Within the TOP 10, China showed the largest increase in R&D spending - an increase of 9.6 times, Taiwan - an increase of 2.5 times and the United States - an increase of 2.3 times.
Global R&D spending from 2013 to 2021 increased 2.1 times, where the United States (44% contribution to total growth) and China (31% contribution) provided ¾ from global growth. Here are the leaders of the new world order.
China publishes strategy to protect intellectual property
On October 28, 2021, the State Council of China published a plan for the protection and application of intellectual property rights for the 14th five-year plan, which will be between 2021 and 2025. To assess the success of achieving the goals, the plan put forward eight criteria, including the number of expensive patents that every 10 thousand people possess. Read more here.
2020: R&D spending - $370.6 billion
In 2020, China increased funding for science and technology to $370 billion, and the number of scientists amounted to almost 5 million people.
2019: Leadership on patents
At the end of April 2020, the World Intellectual Property Organization (WIPO) ranked countries by the number of new patents. In 2019, 58,990 China patents accounted for. More. here
2010: Increase in the number of researchers to 2.5 million people with a funding of $90 billion
In 1995, there were about half a million people in China engaged in research and development, and the amount of funding was a paltry $5 billion. By 2010, the staff of researchers had grown to 2.5 million people, and total funding to almost $90 billion.
Notes
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