Beneath the surface: What the new China is hiding - Analysis
- Gabriele Iuvinale
- 24 mag
- Tempo di lettura: 3 min
Key Points
China is determinedly pursuing technological self-sufficiency and control over its own supply chains, reducing dependence on foreign technologies and suppliers.
This strategy is at the core of major national policies, such as the 14th Five-Year Plan and the “Made in China 2025” initiative, which aim to develop strategic sectors like semiconductors, artificial intelligence, and electric vehicles.
The primary goal of the Chinese leadership is not simply to defend against external pressures, but to gain a global competitive advantage and establish itself as a technological and economic superpower.
The process of “decoupling” between China and the United States—the gradual separation of their economies and technologies—is a consequence of this Chinese strategy, not the cause. The real motivation is Beijing’s desire to achieve self-sufficiency and supremacy in key sectors.
International companies must be aware that the operating environment in China is increasingly shaped by these dynamics, with risks and opportunities depending on their ability to adapt to a rapidly evolving and increasingly autonomous market.
In the 21st century, China has undergone an extraordinary transformation, evolving from a regional power into a central player on the global stage. This change has been driven by an ambitious geopolitical and economic strategy, with the country strengthening its influence in several key sectors. Under the leadership of the Chinese Communist Party, China has pursued rapid economic growth, investing heavily in technology, infrastructure, and defense—often at the expense of human rights.
One of the main goals of the Chinese leadership is to reduce dependence on foreign technologies and build solid self-sufficiency. This intent is clearly expressed in the 14th Five-Year Plan (2021-2026) and the “Made in China 2025” initiative. These programs aim to promote domestic production of advanced technologies such as semiconductors, artificial intelligence, and electric vehicles, ensuring that China can compete on equal footing with the United States and Europe.
However, this strategy also presents significant risks for international companies operating in China. Today, businesses face an increasingly complex environment, characterized by geopolitical tensions, stricter regulations, and growing attention to ethical issues and human rights. In particular, human rights violations in the Xinjiang region have drawn international attention: in June 2022, the European Parliament described the situation as “crimes against humanity,” highlighting the risk of genocide.
To address these challenges, companies must adopt a proactive approach, developing contingency plans and carefully assessing geopolitical risks. It is important for businesses to collaborate with governments to help maintain stable relations between the United States, the European Union, and China. The process of “decoupling” between the US and China—the gradual separation of their economies—seems likely to accelerate in the coming years, driven by both political motivations and ethical concerns.
In conclusion, China’s rise as a superpower represents one of the most important challenges of our time. Understanding its strategies and the implications for global security is essential for anyone operating in the international context, both politically and economically.
Final Recommendations
International companies operating in China should closely monitor the country’s push for technological self-sufficiency and supply chain autonomy, as these trends will increasingly shape the business environment.
It is essential to develop flexible strategies and contingency plans to respond quickly to regulatory changes, geopolitical tensions, and shifts in market dynamics.
Companies should conduct thorough risk assessments, considering both the opportunities and the challenges posed by China’s evolving policies and its pursuit of global leadership.
Collaboration with governments and industry partners can help businesses navigate complex regulatory landscapes and maintain stable international relations.
Staying informed about ethical issues, such as human rights concerns, is crucial for protecting corporate reputation and ensuring compliance with international standards.
Companies must adopt effective countermeasures to protect themselves from Chinese technological espionage and intellectual property theft. This includes strengthening cybersecurity protocols, implementing strict access controls, and regularly training staff on information security best practices.
Ultimately, adaptability and proactive risk management will be key for companies seeking to succeed in an increasingly autonomous and competitive Chinese market.
Commenti