China’s Global Technology and Engineering Ascendancy Continues
By Alan Kohler | ABC News | December 7, 2025
China has surged ahead to become the leading global power in technology and engineering, surpassing the United States and other Western nations in many critical sectors that define the modern world. This rise marks a dramatic shift from past decades when China was striving to catch up with Western innovation, particularly that of the US.
Dominance Across Key Technologies
The latest data from the Australian Strategic Policy Institute’s 2025 Critical Technology Tracker reveals China’s commanding presence across a wide range of fields. China leads in seven out of eight categories in artificial intelligence (AI), all thirteen categories related to advanced materials and manufacturing technologies, every category in defense, space, robotics, and transportation, nine out of ten sectors in energy and environment, and five out of nine fields in biotechnology, genes, and vaccines.
Despite this technological supremacy, China has only half the number of billionaires as the US, and the growth of this wealth this year was only half as much as America’s. This paradox reflects the unique nature of China’s innovation model and governance structure.
A Government-Driven Technology Push
Contrary to Karl Marx’s 19th-century skepticism about technology as competition to labor, the Chinese Communist Party (CCP) has enthusiastically embraced technology and engineering under its centralized control. The CCP directs national efforts, guiding innovation through extensive funding and strategic coordination rather than relying primarily on individual entrepreneurs.
China’s "whole-of-nation" industrial policy, which began with the "Made in China 2025" initiative and evolved into the current 14th Five-Year Plan, involves the government investing trillions of dollars into developing critical new infrastructure such as 5G networks, smart cities, industrial digitalization, and cutting-edge technologies. This approach includes coordinated funding across basic research, applied science, product development, and commercialization.
Engineering Marvels and Innovations on Display
China showcased its technological prowess at the 27th Hi-Tech Fair in Shenzhen last month. The event covered around 400,000 square meters and featured advances including humanoid robots engaging in boxing matches, zones dedicated to flying cars (electrical vertical takeoff and landing vehicles), and other impressive innovations.
Faustine Delasalle, Executive at Industrial Transition Accelerator, notes an acceleration in China’s technological achievements unmatched in other parts of the world. Recent examples include mosquito-sized surveillance drones, mountains covered in solar panels, innovative cancer therapies that trick the immune system into attacking tumors, open-source AI models outscoring humans in mathematics competitions, and widespread use of robots for industrial and hospitality purposes.
China also boasts 48,000 kilometers of fast rail, including the Shanghai Maglev—the world’s fastest train— and the Huajiang Canyon Bridge, the planet’s highest bridge.
The Strategic Edge: Industrial Policy and Coordination
Analyst Dan Wang, author of Breakneck: China’s Quest to Engineer the Future, explains that China’s advantage comes from its identity as an engineering state that is committed to continuous building and infrastructure expansion. This contrasts with the US, which Wang describes as a "lawyerly society" that tends to block innovation through regulation and bureaucratic inertia.
China’s government meticulously plans its technological objectives, identifying goals upfront—such as robotic self-sufficiency—and then working backward to pinpoint necessary scientific breakthroughs. It funds research, facilitates technology transfer to companies, and supports their commercialization and scaling. This end-to-end coordination is rare in Western countries which typically see government, academia, corporations, and financiers working independently.
Materials Monopoly and Geopolitical Influence
China holds a near monopoly on critical minerals and rare earth elements essential for modern technologies, granting it significant geopolitical leverage. However, this dominance has also led to overcapacity and intense competition domestically, phenomena known as “involution,” which the government is now seeking to mitigate.
Australia’s AI Plan and International Implications
In stark contrast to China, Australia’s recently launched National AI Plan has been criticized as modest rather than groundbreaking. With a $30 million AI safety institute and reliance mostly on pre-existing funds totaling $460 million stretched over several years, the plan pales in comparison to China’s $56 billion direct investment into AI development in 2025 alone.
China’s ascent heralds a shift from the unipolar world previously led by the US to a “G2” global order dominated by the US and China. This balance of power suggests a future where China might extend its influence further—including a potential peaceful absorption of Taiwan—while leaving other countries, including Australia, needing to recalibrate their geopolitical strategies.
Conclusion
China’s unparalleled government-driven approach to technology and engineering is reshaping the global landscape. Its comprehensive industrial policy, massive funding, and state-directed innovation have enabled it to overtake the US in key areas and establish technological dominance. For countries like Australia, the new reality demands strategic adaptation in a world increasingly influenced by Chinese technological leadership.
Alan Kohler is a finance presenter and columnist for ABC News and Intelligent Investor.
