China’s Global Technology and Engineering Ascendancy Continues
By Alan Kohler, ABC News
Published Sunday, 7 December 2025, 7:00pm | Updated Monday, 8 December 2025, 2:00am
China has transitioned from a position of trying to catch up with Western technological powers—particularly the United States—to becoming the dominant global force in multiple advanced fields that define the modern world.
According to the Australian Strategic Policy Institute’s (ASPI) 2025 Critical Technology Tracker, China leads in nearly every key technological category. It holds the top position in seven out of eight artificial intelligence (AI) categories, all 13 advanced materials and manufacturing sectors, every defense, space, robotics and transportation category, nine out of ten in energy and environment, and five out of nine in biotechnology, genetics, and vaccines.
Dominance Across Critical Technologies
This overwhelming dominance raises questions about how China can lead globally in technology and engineering while having only half the number of billionaires compared to the United States—and with Chinese billionaire growth rates slowing.
Remarkably, China’s ascendancy unfolds under the auspices of the Chinese Communist Party (CCP), a Marxist-Leninist regime traditionally associated with skepticism towards technology as a threat to workers, as noted in Karl Marx’s 1847 work Wage, Labour and Capital. However, the CCP aggressively drives technological development as a state priority, directly guiding and financing innovation. Unlike the US, where billionaires and private companies lead much of the technological frontier, in China entrepreneurs operate under the party’s oversight, and state direction is central to progress.
A Showcase of Innovation: The 27th Hi-Tech Fair
China’s technological prowess was on vivid display at the recent 27th Hi-Tech Fair in Shenzhen. Spanning an immense 400,000 square meters—roughly equivalent to 20 cricket grounds—the exhibition featured dazzling displays of humanoid robots, including robot boxing matches, and a dedicated zone for flying cars or electric vertical take-off and landing ("eVOTL") vehicles.
Faustine Delasalle, executive of Industrial Transition Accelerator, remarked on the noticeable acceleration in China’s technology advancement compared to the rest of the world.
Engineering Feats Across the Country
The list of recent Chinese achievements is strikingly broad:
- Mosquito-sized surveillance drones
- Mountains covered in solar panels, such as in Guizhou
- Innovative cancer therapies that fool the immune system into attacking tumors disguised as pork
- Open-source AI models outperforming human champions in mathematics competitions
- Humanoid robots ready for industrial deployment
- Hotel service robots for cleaning
- An extensive high-speed rail network spanning 48,000 kilometers with trains running up to 350 km/h, including the Shanghai Maglev that surpasses 400 km/h
- The world’s highest bridge, the Huajiang Canyon Bridge
China’s “Whole-of-Nation” Innovation Model
Dan Wang, an analyst and author of Breakneck — China’s quest to engineer the future, explains that China operates as an engineering state with an unrelenting commitment to building infrastructure and technology. This contrasts with the United States’ more litigious and regulation-heavy culture, which Wang critiques as “a government of the lawyers, by the lawyers, and for the lawyers” that often hampers engineering progress.
China’s government invests hundreds of billions of dollars into a “whole-of-nation” industry policy that began with Made in China 2025 and evolved into the 14th Five-Year Plan launched in 2020. This plan commits approximately US$1.4 trillion ($2.11 trillion AUD) over five to six years in infrastructure, including 5G networks, smart cities, and digital industrial upgrades.
Blogger and commentator Noah Smith describes the Chinese innovation approach as a revolutionary departure from the standard innovation model commonly seen in Western countries. Instead of government, academia, corporations, and financiers working independently, China coordinates all these actors toward a singular strategic goal. The government identifies desired technological outcomes—such as national self-sufficiency in robotics—then works backward to fund the necessary research and move technology through to commercial products comprehensively.
This “bean to bar” approach—from initial discovery through to product scaling—is an industry policy at scale, explaining China’s advancement pace.
Geopolitical and Economic Implications
China’s approach has also led it to monopolize critical minerals and rare earth elements essential for modern tech production, enhancing its geopolitical leverage amid ongoing strategic competition.
However, this relentless industrial push has drawbacks, including overcapacity and intense internal competition dubbed "involution," where excessive rivalry results in diminishing economic returns and price wars. The government has begun initiatives to curb this phenomenon.
A Stark Contrast: Australia’s National AI Plan
In comparison, Australia’s recently launched National AI Plan appears modest. It largely repurposes existing funding totaling $460 million spread over multiple years and allocates only $30 million to establish an AI safety institute. This pales in comparison to China’s $56 billion in AI investment in 2025 alone.
Moreover, the Australian plan avoids imposing “mandatory guardrails” on AI development, opting for a largely hands-off regulatory stance—raising questions about its effectiveness amid growing concerns over the risks posed by advanced AI.
The Future Global Order and Australia’s Position
China’s rise signals a shift from American global technological hegemony toward a new “G2” world order, with the US and China effectively managing separate geopolitical spheres. The Trump administration’s recognition of this reality reflects a pivot from attempts to decouple to transactional co-management, conceding vast influence of China, especially in the Asia Pacific.
While concerns remain about China’s political system and governance, its technological dominance is undeniable and reshaping global dynamics.
For Australia, this evolving landscape demands strategic recalibration. Navigating between the two great powers, Australia must adapt to a world increasingly shaped by Chinese technological and industrial leadership.
Alan Kohler is a finance presenter and columnist at ABC News and writes for Intelligent Investor.
