{"id":58023,"date":"2018-11-21T00:00:00","date_gmt":"2018-11-20T22:00:00","guid":{"rendered":"https:\/\/richardvanhooijdonk.com\/blog\/china-is-next-in-line-as-the-new-global-superpower-fact-or-bold-assertion\/"},"modified":"2021-07-12T08:26:26","modified_gmt":"2021-07-12T06:26:26","slug":"china-is-next-in-line-as-the-new-global-superpower-fact-or-bold-assertion","status":"publish","type":"post","link":"https:\/\/blog.richardvanhooijdonk.com\/en\/china-is-next-in-line-as-the-new-global-superpower-fact-or-bold-assertion\/","title":{"rendered":"China is next in line as the new global superpower \u2013 fact or bold assertion?"},"content":{"rendered":"<ul class=\"bold-list\">\n<li>China is testing the waters of geopolitical and economic influence<\/li>\n<li>\u2018Made in China 2025\u2019 \u2013 decreasing reliance on foreign tech<\/li>\n<li>The Thousand Talents program: bringing leading researchers back home<\/li>\n<li>China is a magnet for startups: (market) size matters<\/li>\n<\/ul>\n<p>The screech of the first steam engine marked the beginning of the Industrial Revolution and western superiority on the global stage, exercising both political and technological dominance \u2013 up until the 2008 global financial crisis, which crippled most developed economies and heralded the end of that era. The Asian financial sector was affected as well, but recuperated quickly thanks to its inherent strength. In the wake of the world\u2019s biggest economic meltdown, China <a href=\"https:\/\/www.forbes.com\/2008\/11\/09\/china-stimulus-economy-biz-cx_pm_1109notes.html#6a46ff434b0a\">introduced<\/a> \u201ca massive stimulus package\u201d worth $586 billion to upgrade infrastructure, ensure land reform, and support \u201caffordable housing and environmental protection\u201d.<\/p>\n<p><iframe title=\"China is next in line as the new global superpower \u2013 fact or bold assertion?\" width=\"800\" height=\"450\" src=\"https:\/\/www.youtube.com\/embed\/aB-VNnllR9A?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe><\/p>\n<p>For the first time in recent history, the US was no longer the epitome of power. \u201cIt would be the start&#8230; of Asia looking away from the West,\u201d <a href=\"https:\/\/www.bbc.com\/news\/business-45493147\">says<\/a> Hugh Young, an investment manager. \u201cThat&#8217;s been a steady phenomenon, and if anything, the global financial crisis accelerated \u2026 the rise of China \u2013 which was going to happen anyhow \u2013 but now we see China playing on the global stage as big a role \u2013 arguably a bigger role \u2013 than even the US.\u201d And strategically, one initiative at a time, China might impose itself as the new superpower.<\/p>\n<h2>China is testing the waters of geopolitical and economic influence<\/h2>\n<p>As the power of the US slowly wears off, China\u2019s launching a series of bold initiatives to form the basis from which to carve out a path to global market dominance. For instance, the Belt and Road Initiative, also called the \u2018New Silk Road\u2019 and \u2018One Belt, One Road\u2019, is envisioned to extend the Chinese economic and political domain deeper into Asia, Africa, Europe, and the Middle East through networks of roads, underwater pipelines, and platforms. The idea wasn\u2019t well received by the EU, however, as \u201ctwenty-seven of the 28 national EU ambassadors\u201d <a href=\"https:\/\/global.handelsblatt.com\/politics\/eu-ambassadors-beijing-china-silk-road-912258\">criticised<\/a> the initiative, deeming it to be designed to give Chinese companies an advantage. But the CEO of the German industrial giant Siemens, Joe Kaeser, <a href=\"https:\/\/global.handelsblatt.com\/politics\/eu-ambassadors-beijing-china-silk-road-912258\">underlines<\/a> that \u201cChina\u2019s \u2018One Belt, One Road\u2019 will be the new World Trade Organization \u2013 whether we like it or not.\u201d<\/p>\n<figure id=\"attachment_35347\" aria-describedby=\"caption-attachment-35347\" style=\"width: 800px\" class=\"wp-caption aligncenter\"><img fetchpriority=\"high\" decoding=\"async\" class=\"wp-image-35347 size-full\" src=\"https:\/\/blog.richardvanhooijdonk.com\/wp-content\/uploads\/sites\/4\/2019\/05\/china-superpower.jpg\" alt=\"Fist with American flag boxes fist with Chinese flag\" width=\"800\" height=\"526\"><figcaption id=\"caption-attachment-35347\" class=\"wp-caption-text\">As the power of the US slowly wears off, China\u2019s launching a series of bold initiatives to form the basis from which to carve out a path to global market dominance.<\/figcaption><\/figure>\n<p>The Balkans and Eastern Europe aren\u2019t being overlooked, either. China\u2019s vision for this region \u2013 which it wants to accomplish through its 16 + 1 investment platform \u2013 is ambitious: better infrastructure, advanced tech, investments, partnerships, and much more. But not everyone is <a href=\"https:\/\/thediplomat.com\/2018\/07\/what-to-expect-at-the-2018-china-cee-161-summit\/\">convinced<\/a> that China will make good on these promises, due to \u201cthe lack of substance the platform is producing\u201d. And the mistrust goes so far that \u201cthe platform has been accused of affecting the unity of the EU and being a case of China\u2019s \u2018divide and rule\u2019 approach in Europe,\u201d <a href=\"https:\/\/thediplomat.com\/2018\/07\/what-to-expect-at-the-2018-china-cee-161-summit\/\">reports<\/a> <em>The Diplomat<\/em>. The CEE countries involved in the program, however, welcome even the slightest push that could lift their economies off their knees.<\/p>\n<h2>\u2018Made in China 2025\u2019 \u2013 decreasing reliance on foreign tech<\/h2>\n<p>Another enormous stride onto the global market \u2013 specifically the industrial sectors \u2013 is a 10-year state-led industrial program called \u2018Made in China 2025\u2019. The program was launched in 2015 and aims to build and strengthen China\u2019s manufacturing base by aggressively entering into ten high-tech sectors. Next-gen IT tech and telecommunications, <a href=\"https:\/\/blog.richardvanhooijdonk.com\/en\/these-4-fascinating-and-creepy-soft-robots-are-shaping-the-future-of-robotics\/\">robotics<\/a> and AI, aerospace engineering, and emerging biotech are just some of the pursued sectors. With sufficient funds provided by the state, the mobilisation of state-owned enterprises, and support for scientific research, the Chinese aim to decrease their reliance on foreign tech by encouraging their own high-tech manufacturers to rule the roost in the tech world.<\/p>\n<p><iframe title=\"What\u2019s the beef with the \u2018Made in China 2025\u2019 strategy?\" width=\"800\" height=\"450\" src=\"https:\/\/www.youtube.com\/embed\/2orzNs8Mhe0?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe><\/p>\n<p>And while China\u2019s on a shopping spree, purchasing tech companies the world over, foreign firms find acquiring Chinese companies especially challenging \u2013 almost impossible. In theory, Chinese law doesn\u2019t restrict foreign investment, but \u201cif you want to buy a firm in China, you have to overcome many hurdles and go through numerous approval procedures that are non-transparent. Companies with foreign investors aren\u2019t treated like local companies in China. But that\u2019s precisely what\u2019s needed, and it\u2019s standard practice in the West,\u201d <a href=\"https:\/\/global.handelsblatt.com\/companies\/german-china-investment-discrimination-925574\">explains<\/a> Ulrich Ackermann, a foreign trade expert at the German engineering industry association VDMA. What\u2019s more, access to the Chinese market often involves the transfer of intellectual property that foreign companies bring to the table, which some <a href=\"https:\/\/www.cfr.org\/blog\/why-does-everyone-hate-made-china-2025\">deem<\/a> exploitative. There\u2019s other ways to get know-how, though. China\u2019s prowess is undeniable, and bringing home its own talents that are now dispersed across the world, is another bold step towards becoming the next superpower.<\/p>\n<h2>The Thousand Talents program: bringing leading researchers back home<\/h2>\n<p>In 2008, China established the Thousand Talents Program, primarily urging researchers who moved abroad to return to Chinese universities and institutions, but also to recruit top-notch international talent. This has caused \u2018discomfort\u2019 among the top countries collaborating with Chinese institutions, such as Australia, Canada, Germany, the UK, and the US. What worries the US is that \u201cBeijing also has employed Western-trained returnees to implement important changes in its science, engineering, and math curricula that foster greater creativity and applied skills at China\u2019s top-tier universities,\u201d <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2018-06-22\/china-s-thousand-talents-called-key-in-seizing-u-s-expertise\">says<\/a> Tony Schinella, the US national intelligence officer for military issues.<\/p>\n<p>There\u2019s growing concern that the program could lead to theft of intellectual property, as the program \u201cis a key part of multi-pronged efforts to transfer, replicate and eventually overtake U.S. military and commercial technology, according to American intelligence officials,\u201d <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2018-06-22\/china-s-thousand-talents-called-key-in-seizing-u-s-expertise\">reports<\/a> <em>Bloomberg<\/em>. But not everyone shares this opinion. A professor of higher education at Utrecht University, Marijk van der Wende, <a href=\"https:\/\/www.timeshighereducation.com\/news\/western-universities-urged-rethink-chinese-military-ties#survey-answer\">clarifies<\/a> how \u201cwider geopolitical issues have \u2018always affected [academic] cooperation, for better or for worse\u2019 so, in that sense, recent developments affecting Western-China academic collaborations are \u2018nothing new\u2019\u201d.<\/p>\n<h2>China is a magnet for startups: (market) size matters<\/h2>\n<p>It\u2019s understandable that young businesses increasingly opt for the Chinese rather than the European or the US market, as it consists of nearly a billion consumers. Just last year, China <a href=\"https:\/\/venturebeat.com\/2018\/05\/27\/should-european-startups-look-to-scale-in-china-or-the-u-s\/\">invested<\/a> some $60 billion in startups, which is pretty close to the $70 billion invested in the US. But despite these similar numbers, the markets are nowhere near close in size. For instance, due to its sheer magnitude and rate of growth, German entrepreneurs are encouraged to enter the Chinese market. \u201cThe window of opportunity is now. There are still many startups who are afraid of going to China, but the brave Western entrepreneurs who go today will have a once-in-a-lifetime opportunity to participate in the biggest economic boom in history, which is hungry for innovation and people who can execute on it. A huge market is awaiting you there,\u201d <a href=\"https:\/\/venturebeat.com\/2018\/05\/27\/should-european-startups-look-to-scale-in-china-or-the-u-s\/\">says<\/a> Eran Davidson, a famous VC investor in Berlin.<\/p>\n<p>While China is strategically executing one bold initiative after another, the US fears losing its global market dominance. One good approach could be to start directing some heavy-duty investments toward education, science, and infrastructure \u2013 not to counteract China, but to create an equilibrium of knowledge and power.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>China is testing the waters of geopolitical and economic influence \u2018Made in China 2025\u2019 \u2013 decreasing reliance on foreign tech The Thousand Talents program: bringing leading researchers back home China is a magnet for startups: (market) size matters The screech of the first steam engine marked the beginning of the Industrial Revolution and western superiority [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":50704,"parent":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","footnotes":""},"categories":[2871],"tags":[4139,4581,4218,4573],"article-type":[],"trends":[],"class_list":["post-58023","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-government","tag-china","tag-china-en-2","tag-future","tag-tech-en-2"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>China is next in line as the new global superpower \u2013 fact or bold assertion? - Richard van Hooijdonk Blog<\/title>\n<meta name=\"description\" content=\"As the power of the US slowly wears off, China\u2019s launching a series of bold initiatives, carving out a 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