According to the Australian Strategic Policy Institute's 2025 Critical Technology Tracker, released last week, China leads in 7 out of 8 AI categories, 13 out of 13 advanced materials and manufacturing technologies, in all 7 categories of defence, space, robotics and transportation, 9 out of 10 in energy and environment and 5 out of 9 in biotechnology, genes and vaccines.

No such qualms in the Chinese Communist Party, which is in charge of a country whose population of workers is declining. The communists are driving the technology bus, not billionaires as in the US, and the few Chinese entrepreneurs who managed to amass a fortune serve at the pleasure of the party. China's arrival as tech supremo was on display last month at the 27th Hi-Tech Fair in Shenzhen.

As Industrial Transition Accelerator executive Faustine Delasalle says: "There's an acceleration in China that we're not seeing in the rest of the world." China used to be trying to catch the West, specifically the US. Then it caught up. Now the West is trying to catch up to China, but likely can't.

Success Of Planned Innovation Over Market led Innovation

Blogger Noah Smith described what "whole of nation" meant in a post last week: "Essentially, what China has done is to ditch the standard innovation model, where government, academics, corporations, and financiers all work independently toward their own goals, and to replace it with a model where the government coordinates their interaction toward a single overarching goal from beginning to end.

"It tries to identify a technological goal — say, becoming nationally self-sufficient in robotics — and then works backwards to figure out what breakthroughs it needs in order to reach that goal. Then it tries to fund the basic and applied research to create those breakthroughs, transfer the breakthroughs to the appropriate companies, help the companies create new products, and then help the companies commercialize and scale those products."

The government works backwards from the goal and then directs the basic research and funds the companies to create products and then to commercialize.

China's government spends hundreds of billions of dollars on what it calls a "whole-of-nation" industry policy, which began with "Made in China 2025" unveiled 10 years ago, and morphed into the 14th five-year plan in 2020 committing US$ 1.4 trillion over five to six years on new infrastructure, including 5G networks, smart cities, and industrial digitalization.

Conclusion

In many ways, autocratic China is where democratic America was in 1944 when the Bretton Woods conference established its global hegemony. China may soon absorb Taiwan, perhaps without firing a shot. America and the world will object, and likely do nothing, confirming a new global order. There are many things wrong with China, but the implication of all this for Australia is clear: In a G2 world, we must find a way to pivot.

The development casts doubt on Washington’s export strategy, which aimed to sell older U.S. chips to China to undercut local rivals without transferring cutting-edge technology. The global tech rivalry between the U.S. and China appears to be entering a new phase. Mint is an Indian financial daily newspaper published by HT Media. The Mint YT Channel brings you cutting edge analysis of the latest business news and financial news. With in-depth market coverage, explainers and expert opinions, we break down and simplify business news for you.

The White House has raised fresh concerns after admitting that China is turning away U.S.-made AI chips, including Nvidia’s H200. According to White House AI czar David Sacks, Beijing is rejecting American semiconductors not due to supply limits, but as part of a push for full technological self-reliance.

Bangladesh has taken a major step toward strengthening its digital independence by moving to reduce reliance on India for internet bandwidth. A private-sector initiative is now underway to establish a direct submarine cable connection with Singapore, one of the world’s largest global internet hubs. The Bangladesh Private Cable System (BPCS) Consortium has recently signed an agreement with Nokia to supply submarine line terminal equipment, marking the country’s first privately led submarine cable project and a strategic shift in international connectivity.

At present, more than 60 percent of Bangladesh’s internet bandwidth is routed through India via terrestrial cables, creating both dependency and significant foreign currency outflow. The proposed Cox’s Bazar–Singapore submarine cable route is expected to dramatically expand bandwidth capacity, enhance cyber security, and give Bangladesh greater control over its internet infrastructure.

With national bandwidth demand projected to increase several times by 2030, officials believe this project will play a crucial role in delivering faster, more secure, and potentially more affordable internet services. Overall, the initiative represents an important milestone in Bangladesh’s journey toward digital self-reliance and long-term technological resilience.