Reference News, December 2 report: The British magazine The Economist published an article titled "Which Areas Will China Lead Next" in its issue of November 29. The main content is translated as follows:
People who are anxious about how to deal with China's leadership in the technology sector are still struggling with electric vehicles, solar panels, and open-source artificial intelligence. But we have some new news for them. This week, we reported that China is making rapid progress in two other cutting-edge technology areas: autonomous driving cars and new drugs. As these industries go global, they will perfectly illustrate the power of Chinese innovation.
In all these important areas, China's progress has always been astonishing. A revolution in the taxi industry of autonomous driving is accelerating, which may reshape the appearance of transportation, logistics, and daily urban life. The production cost of China's autonomous driving taxis is only one-third of that of the U.S. company "New Way of Mobility," and it has accumulated millions of kilometers of driving experience, establishing partnerships in regions such as Europe and the Middle East. At the same time, in the pharmaceutical field, China has transformed from a country that imitated generic drugs into the world's second-largest country in new drug development, including cancer drugs. Western competitors are now obtaining licenses for their products from Chinese companies. The day when a major pharmaceutical company is born in China seems no longer far away.
The rise of these two industries fully illustrates the model of Chinese innovation. The combination of a rich talent pool, a broad manufacturing base, and a huge scale effect together drive China to rapidly move up the value chain. The production of autonomous driving taxis benefits from the advantages of large-scale manufacturing of electric vehicles, and relies on China's leading position in products such as LiDAR and other sensors required for autonomous driving technology; the scale effect also helps reduce costs. A large number of patients participating in clinical trials and the profits from producing generic drugs accelerate pharmaceutical innovation.
An even more unexpected factor behind China's success is its flexible regulatory bodies. Just like in other industries, local governments provide low-interest loans and other support to enterprises. However, the real driver of development is the flexibility of local governments when setting rules. Soon after the Chinese leader set the goal of becoming a "biotechnology superpower" in 2016, many reforms were implemented. The number of staff at the drug regulatory agencies doubled twice between 2015 and 2018, and the backlog of 20,000 new drug applications was cleared within two years. The time required to approve clinical trials was reduced from 501 days to 87 days. Last year, the total number of clinical trials conducted by Chinese companies accounted for one-third of the global total.
Similarly, China started testing autonomous driving taxis early on. Local officials eager to attract talent and investment then approved pilot projects, built sensor and other digital infrastructure to assist autonomous vehicles. These tests have already taken place in more than 50 cities. Many places have also experimented with legal measures to clarify responsibility and guidelines for vehicle testing.
Domestic fierce competition makes life difficult for individual companies, but those that survive are forced to become highly competitive export champions. In China, operators of autonomous driving taxis not only compete with each other but also face competition from cheap manually driven taxis. Many loss-making companies will not be able to survive in the price war caused by this. However, the companies that survive will look to overseas markets to make money.
Therefore, a new wave of low-cost Chinese innovation will sweep across the globe. Its impact varies. Cheap Chinese medicines may bring benefits, especially for developing countries. But for Chinese companies, the U.S. market is the most tempting target because it is profitable and provides 70% of the profits in the global pharmaceutical industry. China's important position in the research and development chain of Western pharmaceutical companies means that the relationship between the two could even be symbiotic. In contrast, autonomous driving taxis are likely to follow the more common path of Chinese tech exports. Although they are barred from the United States - because the U.S. has its own autonomous driving industry and is concerned about safety issues - they may take root in places where autonomous driving technology is far behind.
How should other countries respond?
It is wrong to engage in reflexive protectionism under the guise of various security reasons. When people are worried about being unable to afford the cost of living, blocking or restricting the achievements of Chinese-style innovation would prevent people from enjoying the benefits of cheaper, better medicines and transportation.
That is why Western economies would be better off reflecting on their domestic innovation mechanisms. It is easy to take a fatalistic view of China's rise - believing that its dominance in future technologies is achieved through directives and subsidies, and therefore Western countries cannot follow in its footsteps. But the creativity of China's private sector and the flexibility of its regulatory authorities are also key factors. Alas, unfortunately, the West is heading in the wrong direction in this regard.
No one says China is certain to control the future. But if the West wants to compete in the fields of autonomous driving cars and pharmaceuticals, let alone compete in electric vehicles, solar energy, and other key technologies, it must learn the right lessons from China's rise. (Translated by Tu Qi)
Original: toutiao.com/article/7579193246249665076/
Statement: This article represents the views of the author.