Innovation and technology In a short space of time, China has become a key global player in research, innovation and technological development, and is a central actor in digital development around the world. In terms of development, in key technological areas China is in many cases close to developed economies, and in some sectors is ahead of them. China has overtaken the EU on research and development spending as a percentage of GDP, for example. In space development, too, China is well advanced, serving both civil and military interests. The rapid technological advances are a result of comprehensive investments and state engagement, underpinned by programmes such as ‘Made in China 2025’, an industrial modernisation strategy. China has also successfully transferred technologies and knowhow from foreign companies. Strategic acquisitions of foreign companies with cutting-edge technologies have been significant in this development. Major investments have been made in the life sciences, including basic biomedical research, clinical treatment research, the building of biobanks and the development of biotechnologies and medical technologies. Internationally strong, competitive education, research and innovation environments are well established. Access to extensive amounts of data in combination with both supercomputer capacities and artificial intelligence (AI) algorithms could, in the long term, give China a strategic advantage in key technological areas. China may also come to play a significant role in shaping the standards for the technology of tomorrow. It is still dependent on access to foreign input goods, such as semi-conductors. China is striving to secure dominant global access to rare earth metals, which are of major importance in the production of high-tech products. China’s position in the area may affect the prospects of companies in other countries developing and producing batteries, IT and communications equipment, military equipment and other products. The fifth generation of mobile telephony will be crucial for society’s future communication needs. A number of countries have taken measures to ensure the security of 5G expansion, and several have issued restrictions on equipment from certain Chinese suppliers, in light of concerns over these companies’ links to, or obligation to cooperate with, the Chinese authorities. China’s leadership is striving for China to be a world leader in AI technology. China is one of the countries investing major resources in militarising AI through the development of autonomous weapons systems. In the UN negotiations on the Inhumane Weapons Convention in Geneva, China is one of the countries opposing a legally binding international ban on the development and use of such weapons. AI is considered crucial to developing global military and economic strength, and major investments are being made in building up China’s own capabilities. Systems are being trialled in ‘smart cities’, where AI is part of surveillance systems. AI is used in the ‘social credit’ system currently being rolled out, which may have a negative impact on human rights, not least the right to privacy. 8