Technology Advancement - China

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Technology Advancement - China

Four insights related to why or how China has gotten ahead of the US in technology include China's leadership, research investments, expenditure on late-stage research and China's market development. In addition, three insights into how China uses the internet different than the United States includes how China focuses on Artificial Intelligence (AI), 5G network advancements, and innovations with big data and supercomputers, as well as e-commerce.


Research Investments (Federal)

Late Stage Research and Development Expenditure

Chinese Market Environment

  • The Chinese market is a combination of daring entrepreneurs, a huge market, and adequate capital. As a result, market opportunities are readily sought out and innovations developed into new products.
  • Artificial Intelligence companies benefit from the fast pace of the Chinese market, being able to facilitate changes in their products quickly to increase profits. Products are quickly made, tested, altered and rebranded in the Chinese market, causing quality and functionality to surpass US competitors.
  • The Chinese market readily accepts new products and ideas causing the size to increase at a large scale. With an increase in the popularity and ease of use of e-commerce, goods and services are easily exchanged. This also results in growth in the Chinese market size.
  • China’s huge market size also allows the provision of enough returns to cover the costs incurred by implementing foreign technology or learning new and innovative technologies.
  • The market size also allows them to take on very expensive technologies which tend to be the most innovative and high tech.


Artificial Intelligence (AI)

E-Commerce and Big Data

  • Without privacy constraints and safeguards, China has been able to surge ahead in the area of big data. A total of 31 of the US states have data privacy laws, protecting the sharing of personal data while at least 12 others have broad data security requirements. This is unlike China.
  • In the last three years, mobile payments have emerged as the most popular method of payment in China. In 2017 $18.8 trillion worth of mobile payments were made. A larger amount than China’s GDP.
  • The infrastructure on which these mobile payments are built is considered the best in the world with almost no transaction fee, micro-payment capability, and peer-to-peer payments.
  • This use of mobile payment by so many consumers also increases the data pool for China. With a lack of security restraints, most data that are used online is stored by the Chinese government. As a result of the growing popularity of e-commerce and mobile payment, China is vastly increasing its data pool.


Research to find insights into why or how China has gotten ahead of the US in technology, was conducted through business websites, news websites, and expert blog websites. The same process was followed when researching insights on how China uses the internet in manners the US does not.

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