China has become the greatest added value of the planet thanks to feedback

China wants to stop being the planet’s factory. In fact, you need to stop being. The struggle that holds with the US to get world supremacy It requires that Xi Jinping’s country consolidates as The largest provider of high value services and products. This position would allow him to compete with the country led by Donald Trump on equal terms, something unthinkable just a decade ago. But China is in it. And it’s on the right track.

The first stone was placed by the Chinese president in 2015. That year Xi Jinping announced the implementation of a strategy known as Plan “Made in China 2025” whose purpose was to place China as a world leader in 13 strategic technologies. Ten years later he leads in five of them: unmanned aerial vehicles, solar panels, graphene, high -speed trains and electric vehicles/lithium batteries (these last two go hand in hand). And it is competitive in seven others, among which it is worth highlighting semiconductors, Robots either artificial intelligence (AI).

This is China’s open secret: industrial and technological overlapping

The sanctions that They have deployed USA and its allies During the last three years they have forced China to invest a huge amount of resources with the purpose of becoming their technological industry of foreign countries. Otherwise it would be condemned to stagnation. In this situation it is crucial that we do not overlook that the prohibitions of the US, Netherlands or Japan, among other countries, prevent research institutions and Chinese companies accessing the most advanced lithography equipment and the avant -garde chips.

The latter continue to arrive in China Through intermediary companies mostly housed in Malaysia, Singapore or India. However, chips manufacturing machines are another sack. Presumably the country of Xi Jinping It will take at least five years in having a extreme ultraviolet lithography equipment comparable to those currently produced by the Dutch company ASML. However, as we have just seen, if we stick to the Chinese mature integrated circuits it is competitive, but in semiconductors in general it does not lead.

The scheme we publish on top of these lines has been prepared by the sociologist and researcher at Princeton University, in New Jersey (USA), Kyle Chan for the highly recommended Newsletter High Capacity. It illustrates very clearly how China has achieved within a relatively brief period of time consolidating itself as a world leader in lithium batteries, electric cars or drones, and being a competitor surpassing in industrial robots, semiconductors or artificial intelligence.

The key to this unappealable success is, beyond the great economic investment and human capital that this Asian country is investing in these sectors, Industrial and technological overlap. Kyle Chan’s scheme clearly reflects the interdependence that exists between some companies, such as, for example, Xpeng, Nio or Geely electric cars manufacturers, among others, and lithium batteries producers Catl and Byd. This last company also manufactures cars, buses and electric trucks, among other products.

As we see in the scheme, China has developed several technological and industrial ecosystems that overlap both if we stick to the companies that are involved in them and the technologies involved. The greatest strength of this country is that it is not strong only in batteries; It is also in electric cars. And on smartphones. And in drones. And in industrial robots. And in many other sectors.

Almost all of them are interconnected, well directly, either indirectly. And when one is reinforced by a rupturist innovation all those with whom holds some technological dependence They are also strengthened. Here lies, ultimately, China’s high competitiveness in so many industries of a strategic nature.

Image | Alex

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