Made in China 2025 – The Grand Initiative E-Book

Hermann Selchow

• Herausgeber: tredition
• Kategorie: Geisteswissenschaft
• Sprache: Deutsch

Veröffentlichungsjahr: 2025

Beschreibung

Made in China 2025 - The Great Initiative – From the "Workbench of the World" to an Innovation Nation The book "Made in China 2025 - The Great Initiative – From the "Workbench of the World" to an Innovation Nation" offers in-depth insight into China's transformation from a global manufacturing hub to a leading force in technological innovation. What you can expect from this book: China's technological development: Learn how China is playing a central role in areas such as artificial intelligence, 5G, electric mobility, and the semiconductor industry. "Made in China 2025" strategy: Understand the background and objectives of China's plan to become a technology superpower. In-depth analyses: The book highlights innovation centers such as Shenzhen and companies such as Huawei, Alibaba, and Tencent and their significance for the global tech landscape. Global perspectives: Learn how China's technological rise is impacting the economy, politics, and businesses worldwide. Who is this book for: This book, written in accessible language, is primarily aimed at anyone who wants to learn about China's actual progress. It also addresses decision-makers such as economists, technology experts, entrepreneurs, investors, China researchers, as well as students and journalists who want to better understand China's role in global technology development. Focus content: Insights into China's technology policy and the importance of patent applications. Analyses of surveillance technologies and their international impact. Practical insights for companies competing globally with Chinese innovations. Interaction between population and technology. Why should you read this book? "Made in China 2025 - The Great Initiative" offers a sophisticated and well-researched presentation of one of the most important topics of our time. It helps you understand the dynamics of the Chinese innovation landscape and assess its global significance. Deepen your understanding of China's technological future with this book!

Leseprobe

Made in China 2025 – The Grand Initiative

From the "Workbench of the World" to the Innovation Nation

© 2025 Hermann Selchow

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Made in China 2025 –

The Grand Initiative

From the "Workbench of the World" to the Innovation Nation

Table of contents

Introduction

China's transformation from the "workbench of the world" to an innovation nation

"Belt & Road" - The Impact on the Economy and Geopolitics

From cheap copier to brand manufacturer

Artificial Intelligence: The Silent Revolution in China

5G and communication technologies: China's claim to global leadership

High-speed trains and infrastructure wonders

E-mobility and the transport revolution

Fintech and cashless payments

Chinese Super Apps: The Digital Ecosystem

Smart Cities and Urban Transformation

Health technology and biotechnology

Space travel and China's reach for the stars

Renewable energies and green technologies

Quantum communication: The next dimension

Education and digital learning platforms

Robotics and industrial automation

China's Agricultural Technological Revolution

Acceptance and criticism among the population

What the West could learn from China

Looking to the future: China's innovation strategy 2035

Also published by me:

Introduction

Between 2015 and 2025, a technological dynamic unfolded in the People's Republic of China that is unparalleled anywhere in the world. The story of this decade is not only one of progress and innovative strength, but also of cultural change, geopolitical repositioning, and societal reorientation. It is the story of a country that was long considered the world's workshop but is now establishing itself as a leading innovator in an increasingly digital world.

China's technological revolution during this period is neither a coincidence nor the sole result of individual disruptive inventions. Rather, it is an expression of a targeted, strategic pursuit of autonomy, influence, and competitiveness in a world increasingly dependent on information technology, artificial intelligence, biotechnology, and sustainable energy. These developments cannot be viewed in isolation from the country's political and economic reality, but are deeply rooted in it.

China recognized early on that technological progress is not only an economic driver but also a tool of power politics. The government has invested enormous sums in research and development, created innovation zones, built a nationwide digital infrastructure, and consistently geared the education sector toward future technologies. This systematic approach has made it possible not only to catch up with, but in some cases to overtake entire industries.

But technological development in China is more than just a major government project. It has become part of everyday life. Those who travel through cities like Shenzhen, Hangzhou, or Shanghai see not just visions of the future on paper, but experience a real, functioning ecosystem that ranges from intelligent mobility and digital administration to automated logistics processes. This urban reality is as fascinating as it is ambivalent, for progress is often coupled with questions of data protection, social control, and social justice.

In this foreword, we do not intend to offer a conclusive assessment, but rather a contextual, sober, and at the same time in-depth examination. What drives China's innovative strength? What cultural, historical, and political factors underlie it? And what does this change mean for the rest of the world? It is helpful to break away from simplistic narratives. China is neither the dystopian surveillance regime threatening digital totality, nor is it the technological savior seeking to overtake and save the West. The truth lies – as so often – in the complexity of reality, in the contradictions of a system that relies as much on state control as on entrepreneurial freedom, that is simultaneously nationalistic and global in its orientation.

This technological revolution is not just a Chinese affair. It is transforming supply chains, market mechanisms, diplomatic relations, security strategies, and societal expectations worldwide. The way China develops, introduces, and regulates technologies has long since had an impact beyond its borders. It is therefore crucial not only to see the results but also to understand the processes behind them.

This foreword aims to do just that: to take the reader on a narrative journey that is scientifically sound but not dry; that remains analytical but not unfeeling; that describes without preaching. The goal is to convey a sense of the "why" and "how" of these developments—embedded in historical continuities, geopolitical realities, and cultural peculiarities.

A central aspect of the international perception of China that has changed only slowly in recent years is the Western-influenced image of China as a backward copy machine, an economic giant lacking creative depth, a country that produces with speed but not with spirit and originality. This image is long outdated—and yet it persists in many political, media, and even academic discourses. It is a convenient narrative because it explains China's technological rise as a purely economic consequence of its mass production and thus does not seriously question the possibility that innovation leadership could be permanently displaced from the West.

But reality has long since overtaken this worldview. The idea that innovation arises exclusively in the West and finds a home only there is an illusion that is increasingly faltering. China's innovative strength is not the result of coincidence, plagiarism, or labor cost advantages.

It is structured, planned, strategic, and long-term. While many Western countries plan with political cycles of four or five years and technological development often relies on private ventures, China pursues a national innovation strategy with planning horizons of decades. Projects such as "Made in China 2025" or the long-term vision "China Standards 2035" are not mere PR initiatives, but rather the expression of a systematic understanding of how technology secures power, prosperity, and geopolitical influence.

The Western view of China also often ignores cultural differences in innovation culture. In many Asian countries, especially in China, innovation is not necessarily associated with radical individualism, but rather with collective improvement, social benefit, and national responsibility. Whereas in the West the "lone genius" is considered the ideal image of the innovator, in China the success of networks, platforms, and community structures is often emphasized. Innovation there is not only created in laboratories or garages, but also in marketplaces, in tech ecosystems, in government-sponsored testing zones – sometimes even through government-supported experiments in cities that function as "regulatory sandboxes."

The speed with which new technologies are adapted and scaled in China often overwhelms Western understandings of technological progress. While in Europe or North America, for example, pilot projects often undergo years of discussion and approval, in China – provided political and societal approval is given – entire regions are equipped with new infrastructure, new technologies are rolled out within months, and feedback cycles are utilized in real time. This pragmatism is not only an expression of a different political system, but also of a different understanding of innovation, in which iteration, efficiency, and feasibility take precedence over ideological purity.

Furthermore, the long-outdated Western view of China is often coupled with a subliminal sense of moral superiority. The belief that true creativity and innovation are only possible in liberal democratic systems is increasingly being refuted by reality. Of course, the Chinese system brings with it its own ethical challenges—particularly in the areas of data protection, surveillance, and individual freedoms—but these issues cannot be equated with technological backwardness. Rather, China is demonstrating that authoritarian systems are very capable of fostering and structurally anchoring innovation—albeit with different motivations and consequences.

The West also often underestimates the depth and independence of Chinese innovation cultures. While the first smartphone models from China may have seemed like Western products with a different logo, today it is platforms such as WeChat, TikTok (Douyin), and Alipay that have created entirely new ecosystems that have no direct counterparts in the West. These are systems that combine services, communication, administration, finance, and social interaction in a digital space, thus enabling new forms of everyday life and society. This independence, this culturally influenced form of innovation, is often not recognized in the West – either out of ignorance, mistrust or fear of one’s own superfluity.

In recent years, the West has finally begun to gradually acknowledge this reality – often hesitantly, sometimes alarmed, rarely with sober openness. The debates surrounding Huawei, TikTok, AI competition, and quantum communication are merely the visible symptoms of a deeper process: the realization that technological progress is no longer exclusively at home in the West. Rather, there is a global competition for standards, norms, ethics, and areas of application – and that China is engaging in this competition with determination, resources, and a clear compass.

This realization is painful because it touches on self-images. It demands a new way of thinking, a new self-understanding, and above all, the ability to understand global innovation dynamics not only as a threat, but also as a challenge for our own further development. China's technological rise is not a zero-sum game. It is a global phenomenon that creates new spaces for exchange, but also for confrontation. How the West responds to this—with openness, with competitiveness, with strategic intelligence—will help determine what the technological world order will look like in the coming decades.

The Western view of China is not only characterized by cognitive dissonance and cultural distortions, but often also by institutional inertia and political wishful thinking. A particularly illustrative example of this is the fact that countries like Germany—despite China's undeniable role as a technological superpower and the world's second-largest economy—still provide development aid. This practice not only raises economic policy questions but also reveals a deep-seated misunderstanding of reality.

The reasons for this paradoxical situation are complex. On the one hand, it results from outdated classification systems of international institutions. The OECD, for example, still lists China as an emerging economy in some contexts, a status derived from indicators such as per capita income or rural poverty, but largely ignores China's innovative strength, industrial performance, and geopolitical importance. This systemic inertia leads to development cooperation mechanisms continuing to operate even when they have long since failed to achieve their original purpose.

Secondly, German development cooperation with China is a relic of an era when China was still considered a traditional recipient country – particularly in the 1980s and 1990s. Back then, programs for rural healthcare, poverty reduction, or environmental protection were initiated, often with quite positive effects. But while China developed rapidly, cooperation at the institutional level did not adapt at the same pace. In some cases, it was even politically glorified: as a means of "rapprochement through cooperation," as an attempt to integrate China into international norms and to establish a form of political partnership through technical cooperation.

Another motivation lies in the internal logic of German development institutions themselves. Organizations such as the GIZ (German Society for International Cooperation) and the KfW Development Bank operate not only as aid providers but also as project management agencies with their own interests. The continuation of programs in China – often under the heading of "tackling global challenges together" – offers experience, symbolic partnerships, and access to a significant innovation hub. This leads to projects on sustainable urban development or energy efficiency, for example, in which German expertise is brought in as "help for self-help" – even though China is already a global leader in many of these areas.

The continuation of development aid to China ultimately exposes a Western bias in thinking: an insistence on old categories, a clinging to routines, a hesitancy to clearly identify geopolitical shifts. Those who still treat China as a recipient of development not only misjudge reality but are acting negligently – politically, economically, and ethically. It is time for institutional practice to recognize what has long been obvious: China is no longer a country that needs help. It is a country that has long been helping itself – and in doing so, is redefining the rules of the game in a globalized world.

Given the complexity and multifaceted nature of China's innovation dynamics, it is time to look at the concrete developments of the last decade.

This book is not intended to paint a complete picture in the sense of an all-encompassing encyclopedia – such an undertaking would be presumptuous given the speed at which technological developments are taking place in China. Instead, it aims to provide exemplary insights into the key areas of this transformation in order to develop a well-founded overall understanding.

The following chapters guide you through the key innovation fields in which China made significant progress between 2015 and 2025 – starting with the digital infrastructure, which forms the foundation for almost all technological developments. This demonstrates how consistently and forward-looking China has been in its commitment to widespread 5G expansion, smart city technologies, and digital administrative structures – with effects reaching into the deepest corners of everyday life.

This is followed by in-depth analyses of artificial intelligence, autonomous driving, robotics, aerospace, biotechnology, energy innovation, and the redesign of industrial production processes under the banner of Industry 4.0 with a Chinese character. Each chapter not only illuminates technological breakthroughs, but also their social, economic, and political implications – always with the goal of painting a balanced picture that allows for both fascination and criticism.

We will also not ignore where innovation reaches its limits: technical, ethical, ecological, or social. The dark sides of progress – such as widespread data collection, the merging of technology and social control, or the risks of dependence on digital platforms – are addressed, as are the achievements of Chinese startups, research institutions, and established corporations.

Finally, we offer a look ahead: Where might China's technological path lead? What international dynamics can be expected? And what answers – political, economic, and civil society – could or should the West find?

This book does not invite you to succumb to fear or freeze in admiration. It invites you to understand – and, on that basis, to act more wisely. China's technological revolution is no longer a distant phenomenon. It has long been part of our shared present and will help shape our future. Those who want to understand it must be willing to leave old images behind and embrace new perspectives.

With this in mind, let us embark on this journey.

China's transformation from the "workbench of the world" to an innovation nation

When Zhang Wei opened his small electronics store in Shenzhen in 2015, he still thought in terms of the tried-and-true Chinese economy: cheap production, fast delivery, low margins. Ten years later, the now 45-year-old stands in a state-of-the-art laboratory at his company, which develops artificial intelligence for autonomous vehicles. His story reflects what China has experienced in the past decade: one of the most dramatic economic transformations in modern history.

China's transformation from the so-called "workshop of the world" to a leading innovation nation between 2015 and 2025 represents not just an economic shift, but a fundamental realignment of an entire social system. This transformation touches every aspect of Chinese life, from the way people work and learn to the geopolitical power structures of our time. To understand this development, we must first consider the starting point China found itself in around 2015.

Since Deng Xiaoping's economic reforms in the late 1970s, the People's Republic of China had developed into a global manufacturing center. Millions of jobs were created in factories producing for Western brands. The country became synonymous with low-cost mass production, a reputation that was both a blessing and a curse. While the Chinese economy grew rapidly and lifted hundreds of millions of people out of poverty, the country often remained trapped at the bottom of the global value chain. Profits largely flowed to brand owners and designers in developed countries, while China primarily benefited from low labor costs.

However, this situation was already unsustainable by 2015. Labor costs continued to rise, other countries in Southeast Asia and Africa began to compete with China as the cheapest manufacturing base, and the Chinese leadership realized that a continuation of the previous model could lead the country into a middle-income trap. At the same time, a new generation of Chinese entrepreneurs and engineers was emerging who no longer wanted to simply copy but wanted to innovate themselves.

The Chinese government had recognized this challenge early on. As early as 2006, President Hu Jintao set the goal of making China an "innovation-oriented society" by 2020. But it wasn't until Xi Jinping took power in 2012 that this vision took concrete shape. In 2015, the "Made in China 2025" plan was published, setting out the strategic roadmap for the transition to a high-tech economy. This plan was more than just an economic program; it was a blueprint for reinventing a nation.

The timing was opportune. The global financial crisis of 2008 had shown how vulnerable export-dependent economies could be. At the same time, the fourth industrial revolution was beginning to gain momentum, driven by technologies such as artificial intelligence, the Internet of Things, robotics, and advanced data analytics. China realized that it needed to not just play a role in these areas, but become a leader to maintain and expand its position in the global economy.

The transformation began in the metropolises on the east coast, particularly Shenzhen, Shanghai, and Beijing. Shenzhen, once a sleepy fishing town bordering Hong Kong, had already developed into a center of electronics production in the 1980s. But starting in 2015, the city underwent another metamorphosis. Factories that once assembled iPhone components became research and development centers. Companies like Huawei, Tencent, and BYD invested billions in innovation and attracted talent from all over the world.

The change was physically palpable. Anyone who visited Shenzhen in 2015 and returned ten years later found a completely transformed city. Where factories once stood, glass and steel skyscrapers now housed the headquarters of tech giants and startups. The air had become cleaner, as many polluting industries had either closed or relocated to other regions. Electric buses and autonomous test vehicles plied the streets. The city hummed with digital energy.

But the transformation wasn't limited to the big cities. A crucial factor in China's success was the realization that innovation could not take place in a few centers, but had to be promoted nationwide. The concept of "innovation clusters" was rolled out nationwide. Smaller cities specialized in specific technologies or industries. Hangzhou became a center for e-commerce and fintech, led by Alibaba. Wuhan developed into a hub for optics and laser technology.

Even smaller cities in inland provinces received subsidies and incentives to build their own innovation ecosystems. Government support was crucial. Unlike in purely market-oriented systems, the Chinese government was able to mobilize massive resources and pursue long-term strategies without having to worry about short-term profitability. Between 2015 and 2020 alone, an estimated 1.4 trillion yuan was invested in research and development, both directly through government investment and indirectly through tax incentives, subsidies, and cheap loans.

These investments were concentrated in ten key areas defined in "Made in China 2025": new information technologies, computer-controlled machine tools and robotics, aerospace equipment, marine technology and high-tech shipbuilding, modern railway technology, new energy vehicles, energy equipment, agricultural technology, new materials, and biopharmaceuticals and medical devices. These areas were not chosen at random but represented both China's existing strengths and the industries that would shape the future of the global economy.

The development in the field of electric mobility was particularly impressive. In 2015, China was still a laggard in this sector, dominated by a few Western pioneers like Tesla. Ten years later, the tide had completely turned. Chinese companies such as BYD, NIO, XPeng, and Li Auto were among the world's leading manufacturers of electric vehicles. BYD even temporarily surpassed Tesla as the world's largest producer of electric cars. This success story was the result of a coordinated strategy that skillfully combined government support, private innovation, and market incentives.

The Chinese government recognized early on that the transition to electric mobility represented a historic opportunity. While Western automakers struggled with the burden of their existing combustion engine technology, Chinese companies were able to start from scratch and focus entirely on electric drivetrains. Massive investments in battery technology, especially lithium-ion batteries, paid off. Companies such as CATL (Contemporary Amperex Technology) became global market leaders in battery production, supplying not only Chinese but also international automakers.

At the same time, China built the world's largest electric vehicle charging infrastructure. By 2025, the country had more than 2.6 million public charging stations, more than the rest of the world combined. This infrastructure was not only a technical feat but also a strategic tool for promoting electromobility. Consumers who had previously been hesitant to switch to electric vehicles were encouraged by the widespread availability of charging stations.

The success story of China's electromobility illustrates a key principle of China's innovation strategy: the integration of technology development, infrastructure construction, and market creation. While Western approaches often rely on technologies to emerge organically in the market, China pursued a more holistic approach. The government created not only the technical prerequisites but also the market conditions necessary for the success of new technologies.

Another area in which China made dramatic progress was artificial intelligence. In 2015, the country was still a laggard in this field, significantly behind the United States. The major breakthroughs in AI came from Silicon Valley, from companies like Google, Facebook, and OpenAI. But China had one crucial advantage: data. With over 1.4 billion citizens and an increasingly digitalized society, the country generated enormous amounts of data every day, which is essential for training AI algorithms.

Chinese companies such as Baidu, Alibaba, and Tencent began investing heavily in AI research. They recruited talent from all over the world, often with salaries that exceeded even Silicon Valley standards. At the same time, specialized AI companies such as SenseTime, Face++, and iFlytek emerged, focusing on specific applications. SenseTime became one of the world's most valuable AI startups, specializing in computer vision and facial recognition. iFlytek dominated the field of speech recognition and synthesis.

From the beginning, Chinese AI development was strongly application-oriented. While Western researchers often worked on theoretical breakthroughs, Chinese companies focused on integrating AI technologies into real-world products and services. This led to rapid and visible successes. Chinese smartphones received AI-based camera features that automatically recognized scenes and optimized photos. Chinese e-commerce platforms used AI for personalized recommendations and fraud detection. Chinese cities implemented comprehensive AI-based surveillance and traffic management systems.

Developments in the field of autonomous driving were particularly notable. Companies like Baidu with its Apollo platform, WeRide, Pony.ai, and AutoX made rapid progress in developing self-driving vehicles. Chinese cities like Beijing, Shanghai, and Shenzhen became test laboratories for autonomous vehicles, with dedicated test tracks and regulatory frameworks that enabled innovation.

The Chinese approach to autonomous driving differed from the Western philosophy. While companies like Tesla and Waymo focused on fully autonomous systems that would work in any situation, Chinese companies pursued a more incremental approach. They focused on specific use cases and environments where autonomous systems could already operate safely. This led to faster commercial implementations, for example, in autonomous delivery services on university campuses or in enclosed industrial parks.

The pandemic, which began in late 2019 and spread globally in 2020, initially posed a massive challenge to China's transformation plans. The economy temporarily came to a standstill, supply chains collapsed, and many companies struggled to survive. Yet, paradoxically, the pandemic ultimately accelerated many of the trends China was already pursuing.

The enforced lockdown led to the rapid digitalization of many areas of life. Home office, online education, telemedicine, and digital payment systems experienced an unprecedented boom. Chinese companies already active in these areas were able to strengthen their market position. Tencent's WeChat became an indispensable platform for communication, work, and commerce. Alibaba's DingTalk dominated the corporate communications market. Pinduoduo, a social commerce platform, benefited from the increased demand for online shopping.

At the same time, the pandemic demonstrated the importance of technology in addressing global challenges. China's use of AI and big data for contact tracing and epidemic control, although controversial, demonstrated the practical applications of advanced technologies. The rapid development and production of COVID-19 vaccines by Chinese companies such as Sinovac and Sinopharm underscored the growing capabilities of the Chinese biotechnology industry.

The pandemic also highlighted the importance of supply chain security and technological independence. Western countries that had been dependent on Chinese imports for decades began to diversify their supply chains and repatriate critical production. For China, this represented both a challenge and an opportunity. On the one hand, it threatened to lose traditional export markets, while on the other, it intensified the pressure to achieve technological independence.

This development was particularly evident in the semiconductor sector. Chips are the "oil of the 21st century," essential for all modern technologies from smartphones to electric cars. However, China was heavily dependent on imports, especially for advanced processors. Increasing trade tensions with the United States and restrictions on access to advanced semiconductor technologies made this dependence a strategic risk.

The Chinese response was characteristic of the country's new approach to innovation: massive investment in the domestic semiconductor industry. The National IC Industry Investment Fund, also known as the "Big Fund," was expanded and invested tens of billions of dollars in Chinese chip manufacturers. Companies such as SMIC (Semiconductor Manufacturing International Corporation), Yangtze Memory Technologies, and Cambricon Technologies received enormous support.

The progress was impressive, even though China had not yet caught up with the technological lead of Taiwan, South Korea, and the USA. SMIC began mass production of 14-nanometer chips and worked on even more advanced technologies. Yangtze Memory established itself as a major memory chip manufacturer. Cambricon developed specialized AI chips that were used in various applications.

In parallel with its chip production efforts, China invested heavily in the research and development of alternative technologies. Quantum computing, an area with the potential to revolutionize traditional chip architecture, became a particular focus. Chinese researchers achieved several breakthroughs in quantum technology, including the development of quantum computers with over 100 qubits.

The Hefei University of Science and Technology, led by Professor Pan Jianwei, became a global center for quantum research. The team developed "Jiuzhang," a quantum computer that demonstrated quantum superiority over classical computers for specific tasks. These successes positioned China as one of the leading players in quantum technology, alongside the US and Europe.

The significance of these developments went far beyond pure technology. They signaled that China was no longer a mere follower in technological development, but was beginning to take the lead in certain areas. This shift had profound implications for the global technology landscape and geopolitical power relations.

Another area in which China made dramatic progress was space. Chinese space exploration had already attracted attention in the 2000s with manned missions and moon landings. But between 2015 and 2025, the Chinese space program reached a new dimension. In 2021, the Chinese rover "Zhurong" successfully landed on Mars, making China the second nation after the United States to operate a functional rover on the Red Planet.

Even more impressive was the construction of the Chinese space station "Tiangong" (Sky Palace). After the planned decommissioning of the International Space Station (ISS) around 2030, Tiangong could be the only permanently manned space station in Earth's orbit. The station serves not only as a symbol of China's technological capabilities but also as a platform for scientific research and international cooperation.

Chinese space travel benefited from the same coordinated approach that characterized other areas of Chinese innovation. State investment, long-term planning, and the integration of diverse technologies enabled advances achieved in a shorter time than many experts had thought possible.

At the same time, a vibrant commercial space industry emerged in China. Companies such as iSpace, Landspace, and Galactic Energy developed low-cost rockets for transporting small satellites. These companies operated similarly to SpaceX in the United States, with the goal of drastically reducing the cost of accessing space.

The development of Chinese space travel also had practical implications for other technological fields. Satellite technology was used to improve navigation systems, telecommunications, and Earth observation. The Chinese BeiDou satellite navigation system became a viable alternative to the American GPS, offering even better accuracy in some regions.

However, China's transformation was not limited to high-tech sectors. Traditional industries also experienced remarkable modernization. The steel industry, once a symbol of China's polluting heavy industry, was revolutionized by the use of AI, robotics, and cleaner production processes. Baosteel, one of the world's largest steelmakers, implemented "smart factories" where algorithms optimized production and reduced energy consumption.

Similar transformations took place in the chemical, textile, and machinery industries. The concept of "smart manufacturing" became a central theme of Chinese industrial policy. Factories were equipped with sensors, data analytics, and automated systems to increase efficiency and improve quality.

This modernization of traditional industries was particularly important because it affected millions of jobs. China had to strike a balance between promoting new technologies and preserving employment in existing sectors. The solution lay in gradual transformation, introducing new technologies to increase productivity without destroying large numbers of jobs.

At the same time, China invested heavily in retraining and upskilling its workforce. Vocational training programs were expanded to provide workers from traditional industries with the skills needed in the new economy. Universities and vocational schools adapted their curricula to produce more graduates in STEM (science, technology, engineering, and mathematics) subjects.

The education reforms were a crucial component of China's innovation strategy. The country recognized that the transition to a knowledge-based economy required a fundamentally different type of human capital. Instead of workers performing simple, repetitive tasks, China needed creative problem solvers, critical thinkers, and innovators.

This realization led to a fundamental reorientation of the Chinese education system. While the system had traditionally focused on memorization and test performance, schools and universities began to place greater emphasis on creativity, critical thinking, and practical application. STEM education was promoted, but fields such as design, crafts, and entrepreneurship also received increased attention.

Chinese universities began to aggressively recruit international talent. Programs such as the Thousand Talents Initiative attracted top researchers from around the world to China. At the same time, Chinese students were encouraged to study abroad and then return to China with their knowledge. This "return migration" brought valuable experience and networks to China.

The efforts paid off. Chinese universities climbed international rankings. Tsinghua University and Peking University established themselves as world-class institutions, rivaling Harvard and MIT. Chinese researchers began publishing more scientific papers and being cited more frequently.

Developments in biotechnology and medicine were particularly notable. China had traditionally lagged behind in these fields, but the combination of government support, private investment, and international cooperation led to rapid progress. Chinese companies such as BGI Genomics became global leaders in genome sequencing. WuXi AppTec established itself as a leading drug development service provider.

The COVID-19 pandemic provided Chinese biotech companies with an opportunity to demonstrate their capabilities. The rapid development and production of vaccines, testing procedures, and treatments demonstrated China's capacity to respond to global health crises. Chinese vaccines were deployed in dozens of countries, strengthening China's role as a global health partner.

Parallel to its technological development, China also experienced a remarkable cultural renaissance. The growing importance of innovation and creativity led to a revaluation of design, art, and entertainment. Chinese video games, films, and music productions gained international recognition. Companies like miHoYo with its game "Genshin Impact" demonstrated that Chinese creativity could conquer global markets.

This cultural dimension of China's transformation was important because it strengthened the country's soft power. While in the past, China was primarily perceived for its economic power and, increasingly, its military strength, the country now also began to shine culturally. Chinese technology brands such as Xiaomi, OnePlus, and DJI gained loyal followers worldwide, not only for their prices, but also for their design and innovation.

The role of the Chinese diaspora in this process could not be underestimated. Millions of Chinese living and working around the world served as bridges between China and other countries. They not only brought knowledge and experience back to China, but also helped establish Chinese products and services in their host countries.

At the same time, a new generation of Chinese entrepreneurs emerged who thought and acted globally. These entrepreneurs were no longer solely focused on producing for the Chinese market but wanted to build global companies from the outset. They understood both Chinese and Western business culture and were able to navigate between both worlds.

One example of this new generation was Zhang Yiming, the founder of ByteDance, the company behind TikTok. Zhang recognized early on the potential of AI-powered algorithms for personalized content and built a platform that was successful not only in China but worldwide. TikTok became one of the fastest-growing social media platforms in history and demonstrated that Chinese companies were capable of creating global internet services.

However, TikTok's success story also served as an example of the growing geopolitical tensions that accompanied China's rise. The platform faced security concerns and regulatory pressure in various countries, highlighting the complexity of Chinese technology companies' global expansion.

These tensions reflected a broader concern: China's rise as a technological superpower. While many welcomed the benefits of Chinese innovation—cheaper products, faster development, more competition—concerns grew at the same time about its impact on the global balance of power, data security, and the economic security of other countries.

The China-US trade war that began in 2018 was a manifestation of these tensions. Tariffs, sanctions, and technology embargoes became weapons in a larger struggle for technological dominance. For China, these conflicts increased the urgency of achieving technological independence. For other countries, they raised questions about dependence on Chinese technologies.

Paradoxically, these tensions, in some ways, accelerated China's innovation efforts. The pressure to become independent led to even greater investments in domestic technologies. At the same time, the trade restrictions forced Chinese companies to become more creative and efficient. Huawei, for example, responded to the US sanctions by developing its own operating system, HarmonyOS, and intensified its efforts to develop its own chip designs.

However, China's rapid technological development also brought with it fundamental ethical questions that profoundly changed the country's social fabric. The implementation of new technologies often occurred at a pace and scale that would have been unthinkable in Western democracies, raising both benefits and serious concerns.

The city of Shenzhen became a testing ground for these technologies. By 2022, an estimated 2.6 million surveillance cameras were installed in the city, supported by AI systems that scanned and analyzed millions of faces around the clock. Authorities argued that these systems had drastically reduced crime rates and improved public safety. Indeed, Shenzhen experienced a significant decline in crimes such as theft and violent offenses.

But these technological capabilities raised fundamental questions about privacy, human rights, and social control. Surveillance technologies were used not only to combat crime but also to monitor political dissidents, religious minorities, and social activists. The situation in Xinjiang, where surveillance technologies were used to comprehensively control the Uyghur population, was widely criticized internationally and led to sanctions against Chinese technology companies.

The ethical dilemmas were further complexed by the introduction of the social credit system, an ambitious attempt to control the behavior of citizens and businesses through a comprehensive rating system. The system, which combined various data sources—from creditworthiness and debt levels to traffic violations and social media activity—promised to promote trust in society and reduce antisocial behavior.

For many Chinese, the social credit system did bring benefits. Individuals with high scores received access to better loans, preferential treatment in government transactions, and other perks. The system also helped combat fraudulent business practices, excessive indebtedness, and corruption, and strengthen trust between companies. In a society that historically struggled with trust issues in business, the system offered a technological solution to a real societal problem.

At the same time, however, the system also created new forms of social control and exclusion. People with low scores could be barred from purchasing airline tickets or high-speed train tickets, their children could have difficulty accessing certain schools, and they themselves could be disadvantaged professionally. The arbitrary nature of some evaluation criteria and the difficulty of regaining lost points created a system that could restrict social mobility.

Technological innovation in China thus developed in a tension between efficiency and control, between societal benefit and individual freedom. This tension was particularly visible in the way China dealt with data protection and privacy. While Western countries passed increasingly strict data protection laws, China pursued a more pragmatic approach that prioritized the societal benefits of data analysis over individual privacy rights.

These different approaches led to different innovation paths. Chinese companies were able to access vast amounts of data and use it to develop and improve their algorithms. This accelerated the development of AI applications and enabled innovations that would have been more difficult to realize in more privacy-restrictive environments.

At the same time, however, discussions also emerged within China about the appropriate limits of technological surveillance. Intellectuals, lawyers, and even some government officials began to ask questions about the right balance between security and freedom. These discussions often took place in academic circles or subtly on social media, as direct opposition to government policy remained risky.

The growing power of technology companies led to an interesting development in Chinese politics. While the government initially encouraged the growth of these companies, starting in 2020, it began to intervene through regulation. The antitrust proceedings against Alibaba, the data protection requirements for TikTok, and the education reforms that affected ed-tech companies signaled a new phase in the relationship between the state and technology companies.

This wave of regulation reflected the recognition that unchecked technological growth could lead to societal problems. The government was concerned about the emergence of monopolies, the exploitation of workers in the gig economy, and the impact of social media on mental health, especially among young people.

However, regulating the technology industry was a balancing act. On the one hand, the government wanted to control harmful excesses, but on the other, it did not want to stifle the industry's innovative power. The way this balancing act was handled had important implications for the future development of China's technology industry.

A particularly sensitive issue was the role of technology in education. Chinese ed-tech companies such as VIPKid, Yuanfudao, and Zuoyebang had experienced tremendous growth during the pandemic as millions of students relied on online learning. These companies developed advanced AI-powered learning systems that enabled personalized instruction and adaptive assessments.

But the government became increasingly concerned about the impact of these technologies on society. Intense competition in education, amplified by technological solutions, led to an "education race" that placed enormous financial and psychological pressure on families. Children increasingly spent time on additional online lessons, raising concerns about their physical and mental health.

In 2021, the government introduced drastic reforms in the edtech industry aimed at reducing pressure on families and promoting a more balanced development of children. These reforms demonstrated that China was willing to accept short-term economic losses in order to achieve long-term societal goals.

The ethical challenges of technological innovation were also evident in the field of biotechnology. China's rapid advances in genetic research and manipulation raised fundamental questions about the limits of scientific research. The case of He Jiankui, who announced in 2018 that he had created the world's first gene-edited babies, shocked the international scientific community and sparked intense discussions about the ethical limits of genetic engineering.

The Chinese government responded swiftly and sharply to He Jiankui's experiments. He was sentenced to three years in prison, and the government significantly tightened regulations on genetic research. This response demonstrated that, despite its drive for innovation, China did indeed set limits on acceptable scientific practices.

At the same time, China continued to invest heavily in biotechnology, albeit with greater ethical oversight. The development of gene therapies for serious diseases, stem cell research, and the development of personalized medicine were advanced, albeit under stricter ethical guidelines.

The issue of jobs and social justice was another important ethical aspect of technological transformation. While new technologies created millions of new jobs, they simultaneously threatened traditional forms of employment. Automation in factories, the use of AI in service sectors, and the digitalization of traditional industries led to significant shifts in the labor market.

China attempted to address these challenges through comprehensive retraining programs and the promotion of new forms of employment. The gig economy, driven by platforms such as Meituan for food delivery and Didi for ride-hailing, offered millions of people new income opportunities. At the same time, entirely new career fields emerged, from AI trainers to drone pilots.

But these new forms of work also brought new challenges. Gig workers often lacked traditional labor protection rights, health insurance, and job security. The platform economy created new forms of precariousness, where workers constantly competed for jobs and their incomes fluctuated sharply.

The Chinese government recognized these problems and began to develop new regulations for the platform economy. These efforts reflected a broader awareness that technological innovation should promote not only economic growth but also social cohesion.

Another important aspect was the environmental impact of technological transformation. While China made considerable progress in developing green technologies, rapid digitalization also brought with it new environmental challenges. The energy consumption of data centers, Bitcoin mining operations, and AI training was significant. The production of smartphones, laptops, and other electronic devices required rare minerals and generated electronic waste.

China responded to these challenges with a combination of technological solutions and regulatory measures. The country invested heavily in renewable energy to meet the growing energy demands of its digital infrastructure. At the same time, regulations for the recycling of electronic devices were tightened and incentives for the development of more energy-efficient technologies were created.

The emergence of "green innovation" became a key theme in China's technology strategy. Companies such as BYD in electric mobility, LONGi in solar technology, and CATL in battery technology positioned themselves as pioneers of sustainable technologies. These companies not only benefited from the growing domestic demand for green technologies but were also able to successfully expand into international markets.

The ethical dimensions of Chinese technology development also extended to international relations. China's technology exports, particularly in areas such as telecommunications infrastructure and surveillance technology, raised questions about the global spread of authoritarian technologies. The Belt and Road Initiative, China's ambitious infrastructure project, increasingly included digital infrastructure, leading to concerns about "digital authoritarianism."

At the same time, Chinese representatives argued that their technologies could help developing countries leapfrog development and modernize more quickly. Chinese fintech solutions enabled the unbanked to use digital payments. Chinese e-commerce platforms helped small businesses reach global markets. Chinese surveillance technologies could be used to combat crime and provide disaster relief.

This dual nature of Chinese technology—simultaneously liberating and control-oriented—reflected the more complex ethical realities of modern technological development. Technologies were neither inherently good nor bad; rather, their effects depended on how they were implemented and regulated.

Chinese society itself underwent profound changes during this transformation. A new generation of Chinese, raised with smartphones and social media, had different expectations of technology and privacy than their parents. These younger Chinese were often more tech-savvy, more globally minded, and more critical of authority.

At the same time, rapid technological development led to a widening of the digital divide. While urban, educated Chinese benefited from the latest technologies, rural and older populations often lagged behind. The government recognized this challenge and implemented digital inclusion programs, but the gap remained a significant societal issue.

The role of women in China's technology industry was another important societal issue. While China had more female leaders in the technology industry than many Western countries, women remained underrepresented in technical roles. However, companies like Alibaba, led by strong female leaders like Lucy Peng, demonstrated that women could play important roles in China's technology development.

The cultural impact of technological transformation was also profound. Traditional Chinese values such as respect for age and authority sometimes clashed with the more egalitarian, meritocratic culture of the technology industry. Young entrepreneurs earning millions challenged traditional hierarchies. The "996 work culture" (9 a.m. to 9 p.m., six days a week) prevalent in many technology companies led to discussions about work-life balance and workers' rights.

These cultural tensions were also reflected in the way Chinese technology companies shaped their corporate cultures. Many attempted to adopt Western management practices while retaining Chinese cultural elements. The result was often a hybrid culture that was both innovative and respectful of traditions.

The emergence of a Chinese "technology philosophy" was another interesting aspect of the transformation. Chinese technology leaders began to articulate their own visions for the role of technology in society. These visions often differed from Western concepts, emphasizing collective benefits over individual rights and long-term societal stability over short-term disruption.

Jack Ma of Alibaba often spoke about the role of technology in creating a more inclusive economy. Pony Ma of Tencent emphasized the importance of technology in connecting people and communities. These philosophies influenced not only product development but also the way Chinese companies understood their social responsibility.

The ethical challenges of Chinese technology development were not limited to China, however. As Chinese technology companies expanded globally, they carried their values and practices to other countries. This raised important questions about technological sovereignty and the global governance of technology.