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China’s Quest for Global Dominance in Next-Generation Information Technologies and Electronic Warfare - Analysis


Key points

  1. Chinese Technological Leadership: China is a global leader in sectors such as 5G, drones, Internet of Things, mobile payments, solar cells, and smart cities, and is among the top competitors in artificial intelligence, smartphones, and electric vehicles.

  2. Strategy and Investment: China’s success is driven by massive investments in research and development, STEM education, and long-term strategies like “Made in China 2025” and the “Digital Silk Road.”

  3. Global Industrial Dominance: China controls a large share of global production in consumer electronics, drones, and integrated circuits. Together with Taiwan, it holds about 70% of global chip manufacturing.

  4. Military-Civil Fusion: Through the “Military-Civil Fusion” strategy, China integrates civilian and military technologies, aiming to modernize its armed forces and gain an edge in future “intelligent warfare.”

  5. Global Digital Expansion: Chinese ICT companies have built digital infrastructure worldwide, increasing other countries’ dependence on Chinese technologies.

  6. Security Risks: Chinese laws require companies to cooperate with state intelligence, exposing countries that adopt these technologies to risks related to national security, privacy, and economic stability.

  7. Cyberattack Capabilities: China has developed advanced cyberattack capabilities, able to target critical and military infrastructure in other countries.

  8. Concrete Risk Examples:

    • DeepSeek: Accused of transferring user data to Chinese infrastructure.

    • Ming Yang: Ties to the Chinese military and risks for strategic energy projects in Europe.

    • Chinese Photovoltaics: Hidden devices in inverters that could allow unauthorized remote access.


China is now a global leader in several advanced technology sectors, such as 5G telecommunications, commercial drones, the Internet of Things, mobile payments, solar cells, and smart cities. Even in areas where it is not number one—like artificial intelligence, smartphones, and electric vehicles—Beijing ranks among the world’s top competitors.

This success is the result of massive investments in research and development and a strong focus on STEM education. Government programs like “Made in China 2025” and the “Digital Silk Road” demonstrate China’s long-term strategic vision.



GettyImages
GettyImages

The United States acknowledges that China is gaining global industrial dominance, especially in critical technology sectors. Today, Beijing accounts for 70% of global consumer electronics production, 90% of commercial drone manufacturing, and 35% of the world’s integrated circuit production capacity. Together with Taiwan, China controls about 70% of global chip manufacturing, which is essential for the digital economy, defense, and aerospace.


Beyond commercial control, China aims to integrate civilian and military technologies through its “Military-Civil Fusion” (MCF) strategy. This approach allows Beijing to modernize its armed forces by leveraging advanced technologies, including those acquired illegally. Artificial intelligence is at the heart of this strategy: the Chinese Communist Party uses vast amounts of data to develop advanced algorithms, aiming to gain a decisive advantage in future “intelligent warfare,” where autonomous systems and smart networks will play a central role.


China has also rapidly expanded its digital presence worldwide. Chinese information and communication technology (ICT) companies serve over a billion users domestically and have built digital infrastructure across the globe, thanks in part to the “Digital Silk Road.” These investments include fiber optic cables, data centers, 5G networks, e-commerce platforms, and cloud services.


However, integrating Chinese technologies into other countries’ digital infrastructures carries significant risks. Chinese laws require companies like Huawei and ZTE to cooperate with the government, collecting and sharing sensitive data. This exposes nations adopting these technologies to threats to national security, privacy, and economic stability.


Cyberspace is considered a strategic domain by Beijing. China has developed advanced cyberattack capabilities, able to target critical and military infrastructure in other countries. According to the U.S. Department of Defense, China can launch cyberattacks that cause significant disruptions, such as shutting down a gas pipeline. The Chinese military strategy involves coordinated use of space, cyber, and electronic warfare to paralyze enemy systems in the early stages of a conflict.


Chinese laws, such as the 2017 National Intelligence Law and the new 2023 anti-espionage law, require all Chinese organizations and citizens—even those abroad—to cooperate with state intelligence. This makes every Chinese company a potential extension of the Communist Party and its intelligence services, increasing the risks for countries relying on Chinese suppliers for critical infrastructure.


Concrete Examples of Risk

  • DeepSeek: The Chinese AI company DeepSeek, whose chatbot was the most downloaded app in the U.S. in January 2025, has been accused of sending user data to China Mobile, a state-owned telecom company banned from the U.S. market. The DeepSeek website allegedly contains code that links user data to Chinese infrastructure (The company has always denied any allegations).

  • Ming Yang: Wind turbine manufacturer Mingyang Wind Power Group has documented ties to the People’s Liberation Army. In Germany, the Ministry of Defense blocked a wind farm project involving Ming Yang turbines for national security reasons. In Italy, Ming Yang plans significant investments in Taranto and Brindisi, cities that are strategic for the Italian Navy and NATO (The company has always denied any allegations).

  • Chinese Photovoltaics: Recent investigations have uncovered hidden communication devices in Chinese-made inverters used in solar panels and wind turbines installed in Europe and the U.S. These devices could allow unauthorized remote access, putting the security of power grids at risk.


Final Recommendations: The Need to Decouple from China in Critical Sectors

Given the strategic ambitions of China and the significant risks associated with the integration of Chinese technologies into national infrastructures, it is essential for Western countries and their allies to take decisive action. Here are the key recommendations:

  1. Prioritize National Security

    Governments should place national security above short-term economic gains when evaluating partnerships and technology acquisitions in critical sectors such as

    telecommunications, energy, and digital infrastructure.

  2. Promote Technological Sovereignty

    Invest in domestic research, development, and manufacturing capabilities to reduce dependence on Chinese suppliers for key technologies, including semiconductors, 5G networks, and renewable energy components.

  3. Strengthen Regulatory Frameworks

    Implement stricter regulations and due diligence processes for foreign technology providers, especially those subject to laws requiring cooperation with foreign intelligence services.

  4. Enhance International Cooperation

    Collaborate with allies to develop secure, transparent, and resilient supply chains, and to share intelligence on emerging threats related to Chinese technology.

  5. Support Innovation and Diversification

    Encourage innovation and diversification of suppliers in critical sectors to avoid monopolistic dependencies and foster a competitive, secure technological ecosystem.

  6. Raise Public and Institutional Awareness

    Increase awareness among policymakers, businesses, and the public about the risks associated with Chinese technology and the importance of protecting critical infrastructure.


In conclusion, decoupling from China in critical sectors is not just a matter of economic strategy, but a fundamental requirement for safeguarding national security, technological independence, and the resilience of democratic societies.




About Extrema Ratio
Extrema Ratio is a leading organization specializing in geopolitical analysis and intelligence, with a particular focus on China’s global influence and the complexities of international relations. Through in-depth research and expert commentary, Extrema Ratio provides valuable insights into national security, foreign interference, and the strategic challenges posed by emerging global powers. The organization’s mission is to inform and educate policymakers, professionals, and the public about the risks and opportunities in today’s rapidly evolving geopolitical landscape. For more analysis and resources, visit Extrema Ratio’s blog and publications.

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