Deeper China-US Tech Cooperation to Stabilize Global Industrial and Supply Chains
As the world continues to grapple with subdued investment sentiment and lackluster demand, experts and industry leaders are pointing to deeper China-US cooperation in technology as a key solution to stabilize global industrial and supply chains, thereby driving the recovery of the global economy. The potential benefits of such collaboration are vast, given China’s appeal as a partner for US tech companies, thanks to its robust supply chain support system, efficient logistics infrastructure, expansive market, and favorable government policies that foster innovation.
One of the prominent players advocating for closer ties is Qualcomm China, the US chip heavyweight. Chairman Frank Meng emphasized that China is more than just a market or a link in the supply chain for Qualcomm, and the company sees tremendous opportunities in partnering with Chinese companies in areas such as 5G, artificial intelligence, internet of things, and intelligent connected vehicles. Meng highlighted Qualcomm’s long-standing commitment to China and the significance of its partnership with Chinese companies in advancing technology development and global product introduction.
Former vice-minister of commerce, Wei Jianguo, emphasized the irreversible trend of China and the US engaging in scientific and technological cooperation. He pointed out that both countries hold significant power and influence in high-tech areas, making collaboration essential. Notably, the revenues of several US tech companies last year demonstrate the crucial role China plays in their operations. For instance, China accounted for 62 percent of Qualcomm’s revenues, 27 percent for Intel, 22 percent for Tesla, and 18 percent for Apple. Any restrictions imposed on Chinese tech companies would eventually harm the interests of their US counterparts while simultaneously motivating Chinese enterprises to intensify their efforts in pursuing technological breakthroughs.
Despite recent noise about the potential decoupling of the US and China, Kumsal Bayazit, CEO of Elsevier, a Netherlands-based academic publishing company, emphasized the enduring strength of the China-US research relationship. Bayazit highlighted that both countries are dominant scientific producers globally, each generating approximately 20 percent of scientific articles. The impact index of articles resulting from China-US collaboration is remarkably high, exceeding the world average and surpassing the performance achieved by either country alone. This demonstrates the immense value and potential of continued collaboration between the two nations.
The US tech research cooperation with China aligns with China’s growing technological prowess. For instance, China secured the top position globally in terms of the number of patent applications for artificial intelligence in 2022. IBM CEO Arvind Krishna acknowledged China’s thriving AI industry and emphasized IBM’s commitment to building an open and vibrant AI ecosystem in collaboration with Chinese authorities and customers while ensuring responsible AI use. Sally Loh, president of Otis Worldwide Corp China, a US high-tech elevator manufacturer, expressed optimism about the Chinese market, citing its infrastructure construction and modernization efforts. Loh highlighted Otis’ commitment to integrating digital technology to enhance Chinese enterprises’ production efficiency and product value.
In conclusion, there is a growing consensus among experts and industry leaders that deeper China-US technology cooperation is crucial for stabilizing global industrial and supply chains. The potential benefits are vast, given China’s appeal as a partner for US tech companies, its vibrant market, and supportive government policies. The ongoing warming of China-US relations, coupled with concerted efforts, may pave the way for closer collaboration in various sectors such as the digital economy, advanced manufacturing, low-carbon technologies, and healthcare. This collaboration not only drives economic recovery but also fosters innovation and creates a more stable global economic landscape.