For years, China has dominated conversations as one of the world’s growing superpowers. China’s economic growth has averaged 9% per year since 1978. China remains the world’s second-largest economy, and there are even reports that China leads the world in tech research. However, there are several reasons to believe China isn’t as prepared for the future as we might have thought.
China’s tech advantage undercut
The Australian Strategic Policy Institute (ASPI) think tank claimed China leads the world in tech research. After compiling and comparing studies from all over the world, ASPI found China leads in 37 out of 44 research categories.
From mind-reading machines to floating cars, the rumors of Chinese technology continue to spark intrigue and concern. The use of facial recognition tech to monitor citizens through a social credit score is straight out of a dystopian nightmare.
If a citizen’s social credit score drops too much, others are encouraged to avoid them. Chinese politicians allegedly have to submit themselves to mind-reading machine sessions. That’s fine to ensure their loyalty to the members and ideology of the Chinese Communist Party (CCP).
However, the US is now leading the charge to cut China out of future tech developments. The US banned the sale of superconductor chips to China, and several countries are taking similar measures. Superconductor chips are the driving power of advanced technologies like artificial intelligence (AI). Without access to them, China would seriously fall behind in the next-gen tech race.
New manufacturing options
China is also one of the world’s leading manufacturers. Wherever you are in the world, there’s a huge probability that a substantial amount of available products were made in China. For decades, “made in China” was synonymous with cheap or low-quality production. However, more companies shifted their manufacturing plants to China. That’s due to China’s rigorous work schedule and its lax labor regulations, which allowed corporations to save on overhead and increase profits.
The concentration of manufacturing in the country gave China’s economy a massive boost. However, it appears many companies are now abandoning China and moving their manufacturing elsewhere. Foxconn, which manufactures the world’s iPhones, recently announced it will move one of its factories to India. And Tesla’s announcement of a new Gigafactory in Mexico could pave the way for more US-based companies to follow suit. The US’ southern neighbor could well become China’s substitute.
Mexico also offers cheaper labor than the US but is much closer geographically and politically than China. Mexico also has a young, growing population. China, on the other hand, is facing severe depopulation fears. Many point to the country’s now-abandoned one-child policy for lower birth rates. However, the cause is irrelevant; the fact remains that a dwindling population means a reduced workforce and spells disaster for China’s future.
