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While China's fast growth and innovation capacities are perceived as a potential threat for western economies, it is still far from being a technological superpower, argues Frédérique Sachwald from the Institut Français des Relations Internationales (IFRI).
The paper analyses China's innovation capacity and assesses the challenge it represents for advanced countries. While China used to attract essentially production-based units, it is now attracting research and development activities, the author notes. He further observes a major increase in research and development investments and higher education.
These investments can be considered as a long-term indicator of innovation-capacity increase, but the resources in this area are not as sophisticated as those in advanced countries, the paper states. Moreover, the lack of private funds hinder China's innovation capacities.
Chinese exports in new technologies are focusing on information and communication technologies and the country is still absent in other major areas such as pharmaceuticals or aerospace. As a consequence, the US remains the first high-tech exporter despite the rapid growth in Chinese commercial performances.
The paper highlights factors that obstruct a realistic perception of China's capacities. First, the attraction of foreign high-tech firms to China has distorted expert perception about its capacity in terms og R&D. The installation of these firms is a consequence of the opening of Chinese markets and production facilities, and China's scientific and technological performances vary according to indicators, the author warns. For example, the number of students is similar in China and in the EU; however, comparisons with total populations show that China is in fact less competitive.
Despite China's impressive progress in the field of scientific and technological production, an inventory of its capacities demonstrates that it should be considered as an emerging country, rather than a technological superpower. Its scientific and technological capacities coincide with its social and economic development level, the author concludes.