China’s five-year political and economic plan is a national effort to compete with US innovation.
Chinese politician Li Keqiang says the country will increase research and development spending by over seven percent in pursuit of major technological breakthroughs, over the next five years. The demand to increase research in seven technology areas includes artificial intelligence, brain science, biotechnology, and quantum computing.
Prior to this new plan China designated just 2.5 percent of GDP on research and development, which failed to secure technology goals. The previous plan Made in China 2025 was a national campaign that sought global leadership over several technologies in 2015. Now, China is on its 14th iteration of their five-year plan, which began back in 1953. If China’s economy grows by 6 percent this year, they will be on track to match the US GDP by 2028.
The five-year plan expects both state-owned and private sector companies to comply with the commands of the Chinese Communist Party as opposed to a free market system. The CCP created its own digital currency, an action that strengthened their influence over the economy. Cryptocurrency pioneer Chandler Guo of China says everyone in the world will use Digital Currency Electronic Payment (DCEP) one day.
China’s decision to advance their self-reliance and technological independence comes months after two of their competitive companies, Huawei and SMIC faced US sanctions last December, when they were added to a trade blacklist. Utilizing national technology will remain an increasing priority through 2025 and beyond, as President Xi Jinping desires domestic alternatives to powering smartphones, computers, and future gadgets.
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