Global AI technology advancement sees China surging forward, prompting questions about American competitive edge in this sphere.
In a dramatic shift in the global tech landscape, China has surpassed the United States in several key technological sectors between 2019 and 2023. This revelation comes from comprehensive analyses, including a Harvard technology index, strategic policy reports, and industry evaluations.
Artificial Intelligence (AI)
China leads the global AI race in multiple subfields, having overtaken the U.S. in the number of leading technologies within AI-related areas. A notable example is the "DeepSeek moment" in January, when a Chinese company unveiled a large language model (LLM) almost matching the capabilities of OpenAI's ChatGPT, but for a fraction of the investment.
Solar Energy
Chinese companies are the largest and most innovative producers of solar wafers globally, significantly ahead of U.S. firms.
Electric Vehicles (EVs) and EV Batteries
China leads in producing electric vehicles and advanced battery technology through companies like BYD and CATL.
Drone Technology
Chinese startup DJI is the world’s dominant drone manufacturer, surpassing U.S. competitors.
Biotechnology and Pharmaceuticals
China has made rapid advances in biotech innovation, producing a large and growing number of novel drug candidates, with quality recognized by U.S. and European regulators.
Quantum Computing and Communications
China is competitive and rapidly advancing in quantum technologies, closing the gap with the U.S.
Robotics
Chinese firms have become strong competitors in robotics, a field traditionally dominated by U.S. companies.
Nuclear Power and Fusion Research
China is aggressively pursuing advancements in nuclear and fusion technologies, competing closely with the U.S.
While the U.S. retains narrow leadership in advanced microchips and certain AI domains, China's rapid progress across 57 of 64 major cutting-edge technologies reflects a substantial shift in the global tech landscape.
The Road Ahead for the US
US policymakers need to stop focusing on the past and start focusing on the road ahead for strategic competition with China. The US and its allies (including Taiwan) maintain a narrow lead in advanced microchips and AI, but the gap is closing faster than ever.
Over half of the US billion-dollar start-ups have at least one immigrant founder, and a quarter were launched by individuals who first arrived in the US as international students. This underscores the importance of attracting and retaining foreign talent to maintain a competitive edge.
As China continues to make strides in key technological sectors, it is crucial for the US to act in unison with commercial allies such as the EU, Japan, Canada, the UK, Australia, and South Korea to counterbalance China's advancements.
In the field of artificial intelligence, China has dramatically overtaken the U.S., leading the global race in multiple subfields, as demonstrated by their large language model, DeepSeek, which almost matches OpenAI's ChatGPT, but for a fraction of the investment.
In stark contrast, Chinese companies lead the world in solar energy production, notably surpassing U.S. firms in the innovative manufacturing of solar wafers.
