Xi Jinping’s Push for Technological Dominance

Chinese leader Xi Jinping emphasized the critical need for his party’s elites to understand emerging technologies. He warned that lacking this knowledge could result in China losing its competitive edge in the global economy. In a speech released by Qiushi, the official Communist Party journal, Xi urged cadres to improve their understanding of advanced science and technology. Key areas include quantum technology, biomanufacturing, hydrogen and nuclear fusion energy, brain-computer interface, embodied AI, and 6G.

Xi stressed the importance of identifying future industry giants for technological leadership. China has successfully dominated green technology sectors and controls key raw materials. It aims to maintain its position by focusing on strategic technological sectors.

Over two decades, Beijing invested trillions to become a global manufacturing hub. This support allowed Chinese firms to bypass norms that Western democracies followed, enabling them to gain a global marketplace edge. This strategic investment allowed companies like electric vehicle maker BYD to surpass international competitors.

In 2025, BYD overtook Tesla as the leading EV seller. In Europe, it ranks third, following Volkswagen and BMW. The U.S. has banned Chinese-made electric cars, while the EU considers price controls.

China intends to lead in AI, robotics, and smart devices. It is investing in infrastructure like power grids to support AI research. However, achieving parity with the U.S. in computing power remains uncertain.

China’s plan could help counter economic issues such as an aging population and global industrial policy resistance. Nonetheless, the international community views China’s methods skeptically.

An OECD report highlighted high industrial subsidies, with China receiving 52% of global subsidies. The report found that a significant portion of Chinese firms’ market share growth relied on subsidies.

The OECD noted that such subsidies could lead to less innovation despite short-term consumer benefits through lower prices. While China claims its products succeed due to their competitiveness, many see these practices as providing an unfair advantage.