there are 64 critical technologies that will control the future of the world and Incredibly China Now controls 90% of them but it wasn't always like this in fact 20 years ago it was the United States who controlled 60 of the 64 Technologies but over the past decade China has overpowered the US and now firmly sits in the driver's seat to lead the future of our world this new information was published in a new report entitled critical technology tracker the rewards of long-term research investment it was written by aspy an Australian thing tank who ironically receives funding from the US state department and military industrial complex in other words this organization is anything but pro-china everyone knows China has been the world's Factory for the past four decades but in recent years China has shifted from being a manufacturing Powerhouse to a research Powerhouse and now dominates advanced fields like AI renewable energy biotech space and Quantum Computing The Economist even admitted earlier this year that China is now a scientific superpower 10 years ago Harvard Business Review published a research paper claiming that China isn't able to innovate announcing China is full of uncreative rule-bound Learners who won't be able to contribute to Innovation but fast forward a decade and China now produces five times the amount of high impact research than the United States while the US government has been funding Wars and regime changes across the globe China has been quietly working behind the scenes and LeapFrog the United States as a result of meticulous long-term term planning incredibly Harvard Business review the same Journal that doubted China 10 years ago just released a new article highlighting the four key factors that have led to China's meteoric rise today we're going to break down the four major keys to China's economic dominance and reveal to you how China surpassed the West to become the world leader in Tech trust me in today's video I'm going to reveal to 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been going to the gym four times a week and with the help of lumen I managed to drop 16. 2 lbs in the past two months I feel better am more energized but honestly finally have a better understanding of how my body works and what proper nutrition means for me so if you want to take the next step in improving your health go to lumen me/ cyrus5 to get 15% off your Lumen that is len. meyus 15 for 15% off your purchase thank you Lumen for sponsoring today's episode and now let's reveal the four secrets to China's historic rise in Tech number one The Innovation ecosystem the first major key to China's success is its Innovation ecosystem which uniquely combines top-down government support with the bottomup drive of Chinese entrepreneurs this is in large part due to China operating at a trade surplus of a whopping $ 823 billion in 2023 this means the country as a whole exports far more Goods than it Imports and they can use the excess revenues to develop critical Industries the Chinese government picks key growth industries of the future and supercharges them through favorable policies regulations and centralized investment in scientific research contrast this with the United States where industry growth is much more dependent on shareholder value and short shortterm gains firms in the US May recognize that certain industries are the future yet are much slower to invest in them as they are focused on maximizing profits in the immediate future and are much less willing to invest longterm the United States government also plays a much lesser role when the US government does choose to invest in these industries investment is always subject to change with different parties and budgets and in almost exact opposite position to China the US trade deficit in 2023 at at $773 billion meaning the US Imports much more than it exports as a result any government funding must be raised by printing money from the Federal Reserve adding to the US national debt of over $30 trillion and pushing the world further towards dollarization the approach towards Innovation which China calls the whole of nation lets China Marshall almost unlimited State resources from 1995 to 2021 China's total R&D outlay sored from 18.
2 billion to 600 20. 1 billion a 3,299 increase compared to America's 277 increase in recent years us profits and government stimulus have often gone into stock BuyBacks and executive salaries us firms have become greedy and complacent and research and development have become an afterthought meanwhile China has become a leading Global Hub for advanced scientific research Chinese scientists now lead the world in producing high impact papers and contributing to famous scientific Publications selected after rigorous peerreview no segment better illustrates China's technological prowess than clean tech China now accounts for over 80% of Global Production capacity in 11 essential Clean Energy Technologies and dominates the rare earth supply chain accounting for 70% of global rare earth or extraction and 90% of rare earth or processing in the Solar sector there's virtually no point in Western companies trying to compete China's investment in large large scale solar panel manufacturing over the past two decades drove down prices by 85% between 2010 and 2020 leading to exponential Global growth and significant climate benefits after China opened up its economy in the 1970s many Western companies moved in to take advantage of the massive market and cheap labor in exchange for access to the market Chinese companies benefited from Decades of Western investments in traditional Industries like cars and chemicals this willing transaction of expertise for markets is the source of the stereotype that China steals Technologies ironically it is now the West asking Chinese companies to come to their countries and share their expertise in critical Technologies like clean energy one of the largest US renewable energy developers Ina energy has seized this opportunity to benefit from China's investment in solar this year the company opened the biggest solar factory in America in a 5149 partnership with leading Chinese Solar Company longi as part of the deal Ina energy acquired longis Advanced solar technology and the Ohio facility is expected to eventually produce 5 gaw of solar panels annually and create more than a thousand new American jobs if the us is going to stay committed and meet its climate change goals the only way for them to achieve this is by partnering with Chinese companies Ford is another us company that has recognized that Chinese technology is indispensable to its green Ambitions Ford recently announced a joint venture with catl China's dominant Eevee battle battery manufacturer Ford is investing $3. 5 billion into a new Eevee battery Factory in Michigan that will use license catl technology to cost-effectively produce the lithium ion batteries needed for Ford's F-150 Lightning trucks and other EVS for all the talk about how China is the world's largest polluter the country is undeniably the largest single player in the green energy transition not only for China's transition but for the entire world essentially without China becoming a carbon neutral Planet would be impossible Point number two investment in the global South Western countries have historically targeted their products for exports to only other high income countries and they've often overlooked the small developing countries around the world but China knows what it's like to be a poor developing country and sees these smaller countries around the world as China's biggest opportunity after all 6.
8 billion people live in the global South that's over 85% of the world's population and as these populations grow so will their demand for goods and new technologies China's Belt Road initiative has built ports railroads airports to help facilitate the global Southern increase for demand of goods China's BR has invested over $1 trillion in over 150 countries around the globe and unsurprisingly these initiatives not only ease trade but make China a much more appealing partner than the West Chinese smartphone companies have captured 76% of the smartphone market in India and more than 60% of the African Market the telecommunications company Huawei alone supplies 70% of the 4G network for the entire continent of Africa while Chinese ev's consumption is skyrocketing in the global South in Latin America Chinese companies hold a massive 86% market share of EVs and 40% of all Total Car Sales so what would the global South look like today without China basically there would have been zero changes Western funded infrastructure projects in these countries are virtually non-existent and the rise and development of these Emerging Markets markets would have been delayed by decades once again without China smaller countries across the globe would have had no chance to enter and compete in the global economy that now comprises our world number three ultra competitive markets now this might come as a surprise to many westerners who think that China's government controls every aspect of the country but there is a healthy competitive local market that actually drives Innovation throughout China China's domestic Market is often described as a Gladiators Arena those who become victorious in this cutthroat domestic Market are extremely formidable and able to dominate when moving onto the World Market some of these Victors you may well have heard of like byd or Huawei once Beijing decides an industry will be of significant importance Regional governments scramble to offer subsidies and other support programs hundreds of companies jump in but the majority of them will fail but those that survive will be ready to dominate their respective industry on the world stage Tesla is actually a great case study to examine entering the Chinese market in 2014 Tesla was able to gain a major market share this Market entrance coincided with beijing's decision to prioritize the development of the country's own EV industry and the race was on local manufacturers like Neo xao Pang and byd began producing highquality EVS at competitive prices challenging Tesla's Market position within 6 years 500 Chinese EV companies sprouted up yet after Fierce competition only 100 remained in 2023 of these dyd surpassed Tesla as the world's largest ev manufacturer in total number of cars sold in 2023 Tesla could no longer price its cars at a premium and began to lose market share with newer Chinese EVS becoming too advanced and affordable Tesla responded to the rapidly growing competition by cutting the price of its signature model y four times in 2023 alone fast forward to today and China's booming EV industry has now become so popular that it is an existential threat to the foreign automakers in China 15 years ago Chinese consumers stood in line to pay cash for the privilege of owning a Buick BMW Audi or Mercedes but today most Chinese consumers have embraced the switch to EV cars and instead are now embracing their local Brands instead Chinese companies have now offered a Lifeline to German automakers by sharing their expertise to help these German firms in the transition to EVS Audi and faw are working together on a $ 4. 87 billion EV production facility in Chang Chun and BM W is investing $ 2. 76 billion to upgrade its yanyang plant for Ev production starting in 2026 German automakers were the ones that first taught the Chinese how to build combustion engine style cars but now German Engineers are learning from Chinese EV makers reversing the teacher student relationship Foreign Auto brands are desperate to regain their footing as their ability to adapt to China's Market is not just essential to their company survival but arguably to Germany's economic survival as well number four 1.
4 billion consumers this is actually a very interesting point to observe because for many companies expansion overseas is a necessity in order to drive enough Revenue growth to survive but Chinese firms could easily focus on their domestic Market alone and still become one of the largest companies in the world the market is literally that big if these Chinese companies eventually want to venture outside the domestic Market they come out of the gate ready to dominate as they already have scaled their business to a point where they cons serve 1. 4 billion potential customers this massive Market doesn't just help domestic companies Thrive but ensures that foreign companies will do everything they can to access the Chinese market China's middle class alone has a population of 700 million techsavvy people with disposable income despite all the talk about companies drisking and decoupling from China the country still offers a market of unmatched scale with sophisticated consumers investment into the country and continued business with China is almost a guarantee as a ignoring the market means missing out on a major source of potential Revenue China is expected to grow to as much as 40% of the global luxury spending by 2030 from Cars to luxury items many Western companies would collapse without the significant revenues they receed from the Chinese market using these four major keys to success China has been able to dominate the vast majority of critical Technologies and create the strongest industrial base in the world not only have they used them for their own Advantage but for the future of our world now that China dominates 90% of the world's most important Tech Industries it's time that we in the west ramp down tensions and participate in China's win-win Partnerships because one of my favorite quotes that I've said many times is when the United States and China learn to win the entire world will too everyone thank you so much for spending time with me here on YouTube and again thank you to Lumen for sponsoring today's episode I love this amazing Tech and if it can improve my health and help me live a better life I'm all in remember you can save 15% off by simply going to lumen.
