Global AI technology competition intensifies as China surges forward, leaving the question: Will the United States be able to catch up in this high-stakes race?
China has made significant strides in various technology sectors, narrowing the gap with the US and in some cases surpassing its global competitor. This progress is particularly evident in biotechnology and video gaming.
Biotechnology: A Leap Forward
In the realm of biotechnology, China has transitioned from producing generic drugs to creating innovative, world-class pharmaceutical treatments. By 2024, China had over 1,250 novel drug candidates entering development, nearly matching US levels and far exceeding those in the European Union.
Chinese-developed drugs are meeting high efficacy and safety standards, receiving fast-track approvals from the US FDA and European EMA. Notable examples include FDA-approved cell therapies for blood cancer and novel cancer antibodies outperforming leading US counterparts like Merck’s Keytruda.
Video Gaming Technology: A New Frontier
In August 2024, China launched its first AAA game, Black Myth: Wukong, which utilised advanced AI technologies in its production. The game became the best-selling Chinese game, with over 1.4 million concurrent online players shortly after release, reflecting significant progress in both gaming development and associated technologies.
While the US remains a leader in overall R&D spending and technology innovation, these specific sectors demonstrate marked progress by China, closing or surpassing technology gaps during this period.
However, it's important to note that China’s progress in foundational technology investments like university R&D spending or overarching economic technological competitiveness is not yet on par with the US by 2023. Nevertheless, China’s strategic investments, reforms, and talent return policies have given it an edge in targeted high-tech areas such as biotech and digital entertainment technologies.
The US, with its history of fostering tech giants like Google, Meta, Nvidia, and Tesla, built by graduates of elite US universities, many of whom were not American, should consider its approach to foreign talent. 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.
To maintain its edge, the US should "choose the battles" it can win or those it cannot afford to lose, such as semiconductors and rare earths, and make the long-term investments to reach the right outcome. US policymakers need to stop looking at the past and start focusing on the future in the strategic competition with China.
The idea that China's domestic chipmaking network is far behind or will remain so "flies in the face of history," according to industry analyst Patrick Moorhead. The US should act in unison with commercial allies such as the EU, Japan, Canada, the UK, Australia, and South Korea to maintain its technological edge.
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- The advancements in China's biotechnology sector, as shown by the successful FDA-approved cell therapies for blood cancer and the high number of novel drug candidates entering development, are evidence that China's progress in technology sectors like finance, business, and artificial-intelligence could also be significant.
- In the field of video gaming technology, China has demonstrated rapid progress, such as with the creation of the highly successful AAA game Black Myth: Wukong, which utilizes artificial-intelligence technologies. This progress in technology sectors indicates the potential for China to make strides in other areas like finance, business, and artificial-intelligence as well.
