China winning global tech race raising fears on supply chains

China is leading the world in most technology development raising fears it could hold the world to supply chain ransom. Here’s the stunning lead they have over other nations.

China has a “stunning lead” in 37 out of 44 critical and emerging technologies in the world, raising fears it will soon have a stranglehold on the supply of our most critical technologies, a new landmark report has warned.

And in some instances, Australia has inadvertently been helping them do it.

Security analysts from think tank Australian Strategic Policy Institute (ASPI) tracked defence, space, energy and biotechnology and found in some fields, all of the world’s top 10 research institutions are based in China.

A woman uses her smartphone while walking past advertising outside a Huawei store in Beijing. Picture: AFP

The study, funded by the United States State Department, found the US was often second-ranked, although it led global research in high-performance computing, quantum computing, small satellites and vaccines.

“Western democracies are losing the global technological competition, including the race for scientific and research breakthroughs,” the ASPI study concluded as it urged greater government research investment.

“China has built the foundations to position itself as the world’s leading science and technology superpower, by establishing a sometimes stunning lead in high-impact research across the majority of critical and emerging technology domains.”

A Chinese soldier salutes in front of a drone during a parade in Beijing, China. Picture: Kevin Frayer/Getty Images

The report called for democratic nations to collaborate more often to create secure supply chains and “rapidly pursue a strategic critical technology step-up”.

While not cited, the AUKUS pact between Australia, the US and UK was an example on the drive to collaborating on defence high-tech.

But the risk in tech development being controlled by China particularly for critical military technology could shift global power and create supply chain strangleholds.

A Long March 5B rocket, carrying China's Tianhe space station core module, lifts off from the Wenchang Space Launch Center in southern China's Hainan province on April 29, 2021. (Photo by STR / AFP

“Such risks are exacerbated because of the willingness of the Chinese Communist Party (CCP) to use coercive techniques outside of the global rules-based order to punish governments and businesses, including withholding the supply of critical technologies,” it concluded.

The year-long study found Australia ranked among the top five countries for nine technologies, performing strongly in fields including cyber security, critical minerals extraction and processing, electric batteries, hydrogen and 3D printing.

The Chinese Academy of Sciences, a government research body, ranked first or second in most of the 44 technologies tracked, which spanned defence, space, robotics, energy, the environment, biotechnology, artificial intelligence (AI), advanced materials and quantum technology.

A man rides a scooter past a billboard showing Chinese President Xi Jinping with a slogan which reads "Remain true to our original aspiration and keep our mission firmly in mind" in Beijing on February 28, 2023. Xi has been credited with driving the tech drive. Picture: Jade Gao / AFP

The report found ironically China was bolstering its research with knowledge gained overseas with data showing one-fifth of the top Chinese researchers were trained in a Five Eyes country including the US and Australia.

The study recommended visa screening programs to limit illegal technology transfers and instead favour international collaboration with security allies.

Australian universities have said they comply with foreign influence laws designed to stop the illegal transfer of technology to China but also noted international collaboration was an integral part of university research.