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China Has Edge Over US on Much More Than AI Models

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The shock release of a new Chinese AI known as Deep Seek that’s cheaper, faster and open source sent shockwaves across Silicon Valley, wiping $1 trln off tech stocks and prompting pundits to dub the development a “Sputnik moment” for the US. But AI language models aren't the only area where China is now comfortably in the lead.

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A comprehensive, 20-year study released by the Australian Strategic Policy Institute in 2024 calculated that China dominates the US in 57 of 64 critical technologies, up from just three in 2007.The US, which led in a whopping 60 sectors in 2007, now leads in just seven.ASPI based its rankings on cumulative innovative and high-impact research published and patented by national universities, labs, companies and state agencies.Where Does China Excel?Where is US Leading?What's China's Secret?ASPI credits President Xi Jinping’s ‘Made in China 2025’ plan for the infusion of “massive direct state funding for R&D in key technology,” saying strategic investments already underway were turned into a plan to achieve “technological supremacy.”

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China Has Edge Over US on Much More Than AI Models

14:12 GMT 28.01.2025 (Updated: 14:54 GMT 28.01.2025)

© AP Photo / Ng Han GuanA visitor stand near a robotic surgeon from Chinese firm Medrobot demonstrating its skills on a rose during the 2023 World Artificial Intelligence Conference in Shanghai, Thursday, July 6, 2023.

A visitor stand near a robotic surgeon from Chinese firm Medrobot demonstrating its skills on a rose during the 2023 World Artificial Intelligence Conference in Shanghai, Thursday, July 6, 2023. - Sputnik International, 1920, 28.01.2025

Ilya Tsukanov

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The shock release of a new Chinese AI known as DeepSeek that’s cheaper, faster and open source sent shockwaves across Silicon Valley, wiping $1 trln off tech stocks and prompting pundits to dub the development a “Sputnik moment” for the US. But AI language models aren't the only area where China is now comfortably in the lead.

A comprehensive, 20-year study released by the Australian Strategic Policy Institute in 2024 calculated that China dominates the US in 57 of 64 critical technologies, up from just three in 2007.

The US, which led in a whopping 60 sectors in 2007, now leads in just seven.

ASPI based its rankings on cumulative innovative and high-impact research published and patented by national universities, labs, companies and state agencies.

© Photo : Screenshot / ASPIAustralian Strategic Policy Institute figures showing the global research share in advanced cyber, AI and autonomy, electronic warfare, hypersonic and counter-hypersonic capabilities, quantum technologies and undersea capabilities.

Australian Strategic Policy Institute figures showing the global research share in advanced cyber, AI and autonomy, electronic warfare, hypersonic and counter-hypersonic capabilities, quantum technologies and undersea capabilities.

Where Does China Excel?

advanced integrated circuit design and fabrication

high-specification machining processes

advanced aircraft engines

drones, swarming and collaborative robots

electric batteries

photovoltaics

advanced radiofrequency communication

Excerpt of Australian Strategic Policy Institute report on global leaders in advanced materials and manufacturing.

Where is US Leading?

natural language processing

quantum computing

genetic engineering

What's China's Secret?

ASPI credits President Xi Jinping’s ‘Made in China 2025’ plan for the infusion of “massive direct state funding for R&D in key technology,” saying strategic investments already underway were turned into a plan to achieve “technological supremacy.”

Besides research spending, Xi’s strategy has seen “large and complimentary investments…into industrial policy, upgrading supply chains and the manufacturing sector,” the think tank says.

Global leaders on AI, computing and communications, biotech, gene tech and vaccines, according to calculations from the Australian Strategic Policy Institute.