
“Is the United States now trying to lose the technology race with China? It certainly seems to be.”
That’s the first line in a recent analysis
from one of the world’s foremost research institutions on the subject of U.S.-China technological competition — the
Australian Strategic Policy Institute
(ASPI).
The analysis, published in February and based on an August 2024
ASPI report,
warns that while the United States slashes funding for science and technology,
China is surging ahead
With investigations into key technologies that will shape 21st-century security and economic supremacy. As stated
ASPI’s Critical Technology Tracker
, Beijing outpaces the U.S. in what it calls “high-impact research” in 57 of 64 critical areas.
Here’s one high-profile example: Chinese
electric-vehicle maker
Recently, BYD created a new system to
charge its vehicles in just five minutes
. That’s about the time it takes to fill up a typical automobile gas tank — and it’s
several times faster
than any Tesla charger.
However, that’s only concerning electric vehicle batteries. earlier this year, China shocked the artificial intelligence community with its
release of DeepSeek,
Which quickly emerged as a formidable competitor to OpenAI’s ChatGPT and other large-language model (LLM) platforms. Remember when, shortly after DeepSeek launched, shares of semiconductor powerhouse Nvidia dropped by 17%? This indicated just how significantly DeepSeek’s entrance into the market was anticipated to disrupt things.
Read:
Microsoft is discreetly incorporating DeepSeek’s technology. This could have implications for the stock market regarding AI companies.
NVIDIA’s challenges this year echo those faced by what are known as the Magnificent Seven technology stocks: Apple, Alphabet, Amazon.com, Meta Platforms, Microsoft, and Tesla. According to data from Dow Jones Market Data, even with the recent upturn in the U.S. stock market, these major players have had their weakest beginning to a year since 2022.
One factor contributing to this downturn was the high valuation of these Big Tech stocks. However, another reason has been President Donald Trump’s actions.
tariff spat with China
and his on-again, off-again talk of “terminating”
U.S. Federal Reserve Chairman Jerome Powell
A power that the President of the United States is not constitutionally granted could exacerbate existing uncertainties and worries. This sheds light on why Trump has recently toned down his rhetoric towards both China and Powell, contributing to the recovery observed in the stock market.
National security, economic power, and technological superiority go hand in hand. This is something China comprehends well.
However, valuations and seesaw dynamics under a caretaker president are concerning enough. The greater issue lies with China, which continues to produce more
scientists, engineers and mathematicians
than the U.S. is producing.
China seems to be intensely focused on leading not only in artificial intelligence but also in 6G communications (whereas 5G has become somewhat outdated), aerospace, semiconductor technology, cybersecurity, pharmaceuticals, robotics, biotechnology, and more. They recognize that national security, economic power, and technological advancement go hand-in-hand; none of these can exist independently from the others. Is the U.S. equally aware of this interconnection?
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China critics argue that the nation will likely follow Japan’s trajectory from the 1980s when Japan seemed poised to surpass the U.S. Although anything can happen, as these doubters speculate, we should revisit this idea.
ASPI’s Critical Technology Tracker
, where it was recently indicated that China surpassed the U.S. in 57 out of 64 “high-impact research” fields.
The transformation over the last twenty years has been striking. According to the report, “From 2003 to 2007, the U.S. dominated in 60 out of 64 technologies, but in the most recent period from 2019 to 2023, it leads in only seven.” It further states, “In contrast, China had control over merely three out of 64 technologies between 2003 and 2007, yet it currently tops 57 out of 64 technologies during 2019-2023, expanding its leadership position since our previous ranking (from 2018 to 2022), when it held the top spot in 52 technologies.”
Furthermore, China remains the sole country to have successfully landed a spacecraft on the enigmatic far side of the Moon and also intends to send astronauts there. Its aspirations extend even further; China aims to be the first country to put humans on Mars. This ambition is shared by the United States, setting off an intense competition between them. Will America manage to keep up—and what might this reveal regarding which nation will lead globally in technology and consequently dominate economically?
Read:
The U.S. economy will endure despite Trump and his tariffs. The primary casualty might end up being Trump himself.
China has also outperformed America.
get ahead with highly precise hypersonic missiles capable of traveling at five times the speed of sound and altering their trajectory en route. U.S. security experts refer to them as
“carrier killers”
due to the danger they present to U.S. naval units. According to multiple reports, the Pentagon is hurriedly trying to keep pace.
Electric cars. Artificial intelligence. Moon landings. Hypersonic technology. The list goes on, but consider this: Do advancements such as these suggest that China is following in Japan’s footsteps from the 1980s?
Consider whether global acceptance of American supremacy, despite potential risks, remains justified today. Reflect on whether the U.S. government’s present focus on reducing R&D funding, dismissing experts, rejecting talented international scholars, and undermining values crucial during the Cold War era against the USSR makes sense. Additionally, ponder what kind of unforeseen upheavals—similar to those posed by something like Deep Seek—might shake citizens’ confidence in maintaining America’s top position globally.
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