The strategic foresight shown by China in the cultivation of virtual reality, artificial intelligence, and digital currencies paves China’s long march to tech supremacy
The US has imposed sanctions on China for multiple reasons, including human rights violations, espionage, and support for Russia's actions in Ukraine.To keep pace, Zhengzhou has unveiled a series of policy blueprints aimed at bolstering metaverse enterprises. With a formidable 10 billion yuan fund dedicated to the city’s metaverse industry, the city is ready to foster growth. Offering alluring incentives, companies relocating their headquarters to Zhengzhou stand to access substantial capital injections and a conducive environment for growth. This endeavour advances metaverse technologies, integrating them into the education and entertainment sectors. China's committed funding and incentives reflect its determination to lead the metaverse revolution, paving the way for significant advancements in nationwide virtual reality and immersive digital landscapes.
The Digital Silk Road could extend the adoption of the digital yuan, aiding countries seeking alternatives to dollar-dependent financial structures.Hong Kong became a digital yuan pilot region in September 2022, focusing on cross-border payment experiments. However, its adoption and success are underwhelming compared to other parts of China. Nevertheless, this endeavour aligns with larger objectives to strengthen the RMB's position in the global financial landscape. As the RMB climbs to the fifth-largest asset in foreign exchange reserves, China's actions suggest a move away from dollar dependence, offering new financial avenues. The digital yuan's potential for internationalisation has gained further strength through initiatives like the Belt and Road Initiative (BRI). The Digital Silk Road could extend the adoption of the digital yuan, aiding countries seeking alternatives to dollar-dependent financial structures. China envisages redefining global financial dynamics by encouraging voluntary adoption of the digital yuan.
AI heavily depends on data, and the CCP’s ‘socialism with Chinese characteristics’ model possesses the mechanisms for amassing vast datasets.China's strategic advantage lies in its wealth of data and a highly skilled pool of computer scientists and engineers. Market dynamics also drive diverse AI applications and nurture innovation. With favourable policies and flexibility, China's AI sector exhibits remarkable growth, nurturing pioneering enterprises.
The competition between the US and China has global implications, affecting markets, supply chains, and trade dynamics.The US’ action against Chinese companies has evoked strong counter-responses from China. China's Ministry of Commerce recently added two companies, Lockheed Martin Corporation and Raytheon Missiles and Defense, to its unreliable entities list. Following this move, Lockheed Martin and Raytheon Missiles and Defense will face restrictions on arms sales to Taiwan. The action also bars them from China-related import or export activities and prohibits new investments in China. Despite the US’s efforts to obstruct China's advancements, the country has emerged as a dominant force in critical sectors like robotics, AI, and quantum technology. While the US focuses on semiconductor control, China's leadership extends to various key areas, positioning it as a leading technology superpower. The competition between the US and China has global implications, affecting markets, supply chains, and trade dynamics. Europe has also entered the fray, imposing restrictions on Chinese entities to safeguard national security. The struggle for tech supremacy is complex and multi-faceted, with each nation vying to secure a lasting edge. Nevertheless, the US and Europe have not devoted comparable levels of time and strategic foresight as China in the cultivation of virtual reality, artificial intelligence, and digital currencies. Given the profusion of both talent and data, these advancements are poised to continue China’s unabated progress.
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Sauradeep Bag is Associate Fellow at ORF. Sauradeep has worked in several roles in the startup ecosystem and in international development with the United Nations Capital ...Read More +