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When Chinese President Xi Jinping declared last year that he wanted his nation to become a world leader in advanced technologies by 2025, many thought the goal was too ambitious. It took decades for the United States, Japan, and EU nations to establish their technological dominance in robotics, AI, and biotech. For China to catch up in less than a decade seemed unlikely.
Now, it seems like China is well on track to achieve their goal. They haven’t started from scratch to train and their own scientists and engineers on these and other high-tech industries. Instead, they’ve excelled at tactics that most nations rarely consider. They’re literally buying, begging, and stealing their way into technological dominance.
A report by NPR notes that Chinese companies are grabbing up as many smaller technology companies as they can. One way they’re able to do this is by spying on these companies’ financials through “spy chips” placed on motherboards manufactured in China. By finding vulnerable companies, they’re able to swoop in before the public is aware of potential financial distress.
As for begging, they’re using a technique known as “greenfield investments” where they build companies from the ground up across the world, then hire away employees from established companies to gain access to their knowledge and expertise. These investments are often heralded by politicians who tout the job creation involved, but the dangers associated with the practice are often ignored.
According to Michael Brown, managing director of the Pentagon’s Defense Innovation Unit, this is a bigger problem than just transfer of employment to Chinese companies.
China Makes A Big Play In Silicon Valley
“I’d say they’re very systematic, very long term in their approach and very well-funded,” Brown says.
And, he notes, there is serious concern in Washington that China could acquire too much sensitive U.S. technology and transfer it back home.
“They don’t play by the same rules that we do. So cybertheft is on the table; industrial espionage is on the table,” Brown says.
This brings us to the last tactic in China’s high-tech playbook. They’re stealing technology, literally. This has been well documented with evidence ranging from copying microchip technologies to stealing plans for stealth military aircraft. As Brown pointed out, the rules are different there. They are willing to try to take whatever they can and are daring America and other nations to catch them if they can.
Technology is the key to economic prosperity now and in the future. He who holds the keys to advancement has his other hand in everyone’s wallet. If this aspect of China’s progress continues to be ignored, they will not only meet their goals. They’ll surpass the rest of the world and hold us all as technological hostages.
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