Western countries are increasingly reluctant to share technology with China. In addition, the United States and the Netherlands have recently introduced new export restrictions on semiconductors and the equipment used to manufacture them. Meanwhile, Chinese companies are rapidly climbing the list of the world’s biggest R&D investors. According to Bloomberg columnist Justin Fox, this is a sure sign that the Chinese may no longer need Western technology.
For the companies themselves, such a large increase in R&D spending may be of limited value, not only for the Chinese but also for the Americans. A 2020 study by researchers from the University of Washington and the University of Texas found that while there was once a strong relationship between R&D spending and future profitability, it has weakened significantly since the 1990s. As for national and regional economies, data continue to point to gains in productivity and growth, although it is too early to say whether this will be true for the R&D revival of recent years . If so, it looks like the US and China are in a better position.
Chinese companies have recently burst into the ranking compiled by experts. But already now, newcomers are bypassing recognized industry leaders who have long entered the board. Characteristically, over the decade, the amounts devoted to innovation and research have increased considerably.
In the latest ranking of global research and development spending, U.S. tech companies still lead, but Chinese rivals are on the rise. For Beijing, bridging the gap in the technological sphere means not only economic preferences, but also the end of the era of dependence on Western technologies, which has gradually turned into a lever of influence and retention.
However, it is no less obvious that Beijing does not want to completely cut ties with the West. This umbilical cord connecting the two worlds helps him to stay closer to the adversary, whose horizon of action is very narrow because of such proximity. A complete split between East and West will only lead to an aggravation of the situation and an open confrontation.
Photos used: pixabay.com
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