China has established a high-tech industrial development area in Shenzhen in 1996. From 2002 onwards, the country began to attract Western multinationals that wanted to take advantage of tax exemptions and cheap qualified labor.
By 2008, such foreign firms accounted for 85% of China’s high-tech exports. In 2006, the Chinese government issued a policy document listing 20 major projects in nanotechnology, high-end general chip, aircraft, biotechnology and new pharmaceuticals.
Due to the lack of people using the internet in 2020, Baidu was created. By 2009, in the competition with Google China, Baidu had more than doubled its US market share when internet penetration soared 29%.
After the 2008-2009 global financial crisis, a significant number of Chinese engineers and businessmen returned from Silicon Valley. This has played an important role in the rapid growth of high-tech companies in the vast Chinese market.
As of mid-2019, China had 206 privately held startups worth more than $ 1 billion, surpassing the US (203).
Whether the Americans know it or not, the century of America is over. Nevertheless, there are many expert’s opinions showing that the US is still the King although China has performed an amazing development. The world’s No. 1 power still holds the upper hand thanks to its abundant economic potential, especially the gathering of many of the world’s leading talents and the majority of major software companies are based in the US.
China has publicly announced its ambition to take the lead in AI with concrete plans. However, according to a recent report by Citi Group on competitiveness in this area in 48 economies, the US still leads at a relatively safe distance. The rest of the countries will face serious difficulties in catching up with the US in AI technology in the period 2020-2030.
Michael Brown of the Brookings Institution affirmed that China is still behind the United States in the important areas of semiconductors and aircraft engines. The US still has strong power from their alliances with other countries in order to reshape their domestic policies to enhance competition.