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DeepSeek, TikTok, CapCut, Shein, Temu, BYD, DJI, Huawei - Chinese technology is everywhere and in many areas the country is challenging the former high-tech powerhouses.
It’s all down to an ambitious plan China set out 10 years ago. The Made in China 2025 project vowed to turn China from the world’s factory to the world’s innovator.

And according to experts – they have largely succeeded. So how did they do it and what does it mean for the rest of the world and the future of technology dominance? Our Cyber Correspondent, Joe Tidy, explains.

00:00 Introduction
01:18 Made in China 2025
04:07 Sanctions
05:35 Reactions

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Transcript
00:01The rise of Chinese AI chatbot DeepSeq has taken the world by storm.
00:07But it's part of a wider trend.
00:09Chinese apps are rising up the charts around the world.
00:12TikTok, CapCut, Xi'an, Timu, to name a few.
00:19And it's not just on our phones.
00:21China is becoming dominant in many other areas of tech.
00:24Look at cars. It's overtaken the previous epicenters of motoring,
00:28selling more than any other country thanks to hit electric car makers like BYD.
00:34A lot of this success comes from China being the world's biggest battery maker now too.
00:39And solar panels. China's responsible for an estimated 80 to 95% of the global supply chain.
00:47By 2028, it's predicted that 60% of the world's renewable energy will be generated in China.
00:54In drones too, China rules the skies.
00:58Next time you hear that buzzing above your head,
01:00there's a 70% chance it's a DJI drone made in the city of Shenzhen.
01:05Three of the world's top ten drone makers are Chinese.
01:09In the futuristic world of quantum computers,
01:12Chinese scientists publish more quantum-related research papers annually than any other country.
01:17And they're even ahead of the general leaders, the US, in some areas of quantum computing development.
01:24And it's the same picture in AI.
01:27Chinese AI firms now issue more patents than any other country.
01:31And the rise of DeepSeq shows it's capable of challenging the dominant US giants with products too.
01:37So how has China done all this?
01:41Well, it's all part of a long-term plan.
01:47In 2015, the Chinese government set out an ambitious project called Made in China 2025.
01:53It wanted to move away from being the world's factory for low-cost goods,
01:57to a global tech leader responsible for its own supply chain of cutting-edge tech.
02:02Made in China 2025, in my opinion, was largely successful.
02:07So in many industries, like China is catching up with the leading edge.
02:11And in some industries, China is even leading.
02:14Even in cars and 5G, batteries, solar energies.
02:21Now even in the AI, JAI, China becomes one of the players.
02:26Across 10 target technologies, the plan set out more than 250 mini-goals.
02:32And according to analysis from South China Morning Post, 86% of them have been ticked off.
02:38Some targets, like electric vehicles and renewable energy production, have far exceeded the targets.
02:44South China Morning Post is sometimes accused of being pro-China.
02:47But Made in China 2025 has been hailed a success by many other analysts too.
02:53So how has China done it?
02:55What China has been moderately successful, at least, and some would say incredibly successful at doing,
03:00is using its sort of state-backed capitalism system, whereby the government really sets a research agenda,
03:06sets a funding agenda, bringing foreign researchers and enticing them to stay in China,
03:12or at least to give their innovations and ideas over to Chinese companies,
03:17requiring businesses from outside of China, oftentimes to set up joint ventures with Chinese ventures.
03:23These are all sort of tools that China has used to help achieve these ambitions.
03:28According to US Congress research, the Chinese government planned to raise or spend $1.5 trillion on grants
03:39for research, development or buying foreign companies.
03:42According to the report, more than $627 billion had been spent by 2020.
03:48Research centres sprung up in city hubs centred around various technologies.
03:54Also, the US and its allies have accused China of short-cutting some of its tech innovation
03:59by stealing intellectual property through hacking.
04:02For example, US aircraft makers. China has always denied this.
04:06Made in China 2025 got so successful that after just a few years,
04:12the government stopped using the term as it was antagonising rivals.
04:16But it was too late.
04:18Over the years, the West have imposed restrictions and sanctions on China regarding sensitive technologies.
04:28But this huge external threat has wakened up the Chinese
04:32and kind of forced them to pursue a self-sufficiency strategy in this advanced technology.
04:39There's an old saying in China, life always finds its own way out.
04:43Huawei is a great example of this. In around 2019, it was top of the world in 5G equipment.
04:49It had a huge market share in mobile phones, too.
04:52All of that took a major hit, though, when the US led widespread sanctions against the company,
04:57citing national security concerns around spying.
05:00Huawei's market share shrank and it couldn't get the microchips it needed to keep innovating.
05:06But it pivoted into microchip manufacturing and is now a major player in that, too.
05:12In 2023, it released a phone with a microchip far beyond what the rest of the world thought was possible
05:17for the company or the country.
05:19A similar situation happened with the viral new chatbot DeepSeq.
05:23The firm says it couldn't get the most powerful chips to train its models,
05:27so it says it made do with older ones and innovated new techniques.
05:31They built the impressive bot for far less money with far less kit.
05:35For the US, it came as a shock.
05:37DeepSeq AI from a Chinese company should be a wake-up call for our industries that we need to be laser-focused on competing to win.
05:47TikTok, too, has taken the West by surprise.
05:50It's the first non-US social network to succeed in the last ten years.
05:54Its enormous success is under the spotlight, though, and under threat from potential intervention by the US on national security grounds.
06:02But Xi'an and Timu are proving worthy challenges in e-commerce now, too, thanks to combining China's cheap goods with innovative app technology.
06:11But China hasn't succeeded in all its 2025 goals.
06:15It's still years behind other countries in chip-making, with progress set to get even worse thanks to more sanctions and controls.
06:22Plus, the US government and private firms are throwing hundreds of billions of dollars into staying ahead in chip tech.
06:28This increased research and development funding is going to ensure the United States leads the world in the industries of the future.
06:35And in January, the US celebrated a commitment from tech giants to invest a potential $500 billion into infrastructure for AI.
06:44And it's all taking place right here in America.
06:48Other industrialised countries like Germany and Japan have also launched counter-plans, too.
06:53But there's no doubt that a new high-tech leader has emerged with big ambitions, deep pockets and plenty of patience.
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