Source: Global Times
Chosun Ilbo, a South Korean newspaper, published an editorial on May 28th with the title "China Takes the Lead in Manufacturing while South Korea Stagnates". China launched a strategy in 2015 aiming to transform itself into a manufacturing powerhouse comparable to Germany and Japan. This year marks the 10th anniversary of the implementation of this strategy. At that time, few believed that a country known for producing low-cost, generic products could join the ranks of advanced manufacturing leaders. According to some media reports, today, 10 years later, China has achieved more than 86% of its set goals, a result widely recognized.
The plan initially identified ten core technology fields and included artificial intelligence (AI) in 2018. Today, China leads globally in at least seven areas, including electric vehicles and batteries, drones, high-speed rail, new materials, solar panels, 5G communication, and power systems. In the remaining fields, Chinese companies also rank among the global top tier.
Despite U.S. attempts to contain China's development, China has driven the rise of its manufacturing industry through state-led investment, flexible management in key areas, and a steady supply of science and engineering talent reserves. China's development model benefits from government subsidies and policies supporting domestic enterprises, enabling it to dominate the domestic market. However, financial support is only part of the success. Since 2010, China's annual R&D spending has grown by 12.7%, exceeding 3.6 trillion yuan in 2024, which is more than 20 times South Korea's R&D budget.
China’s pace of development shows no signs of slowing down, with its goal for 2030 being to become a global leader in AI and other cutting-edge technologies. This vision may not be far off, as currently, nearly 47% of AI experts worldwide are from China.
Over the past decade, South Korea has been surpassed by China in almost all industrial sectors except for memory chips and secondary batteries. South Korean business managers have been embroiled in long-term legal disputes, which not only weaken investor confidence but also raise concerns about the rule of law environment. Meanwhile, interest among young people in stable, high-paying professions such as medicine has increased, leading to a decrease in the number of students choosing majors in science and engineering, which were once pillars of national competitiveness. South Korea has lacked a national-level long-term industrial coordination strategy for many years. Looking ahead, South Korea may face even greater challenges in the next 10 years. (Translated by Song Bo)
Original article: https://www.toutiao.com/article/7510071705107/
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