China’s Got a New Plan to Seize the World’s Tech Crown From the U.S.

[rambro]

The west gives fish never the fishing rod

 

[Nan Yang]

China wants her accomplished people back. But I am talking about something else.

China shall also actively recruit smart young foreigners (who grow up in foreign countries) as new immigrant. Those people understand the culture and thinking of their own home land.

When China become the number 1 power in the world, she needs to be able to understand how other countries and other cultures think. Those new immigrants would be the best bridge.

During the height of Tang and Han dynasty, the capital cities were flushed with foreigners who would settle down in China.

Actually even earlier that that. Everybody know Qin Shi Huang of the state of Qin uniting China and becoming the first emperor of China. But do anybody know how the State of Qin became so strong ?
The state of Qin was founded by a horse breeder after given land that nobody wanted. A backward, under developed place facing constant barbarians attacks.
The state of Qin hired a lot of talented people from other states. Even Qin most famous Prime Minister, Li Si was from the state of Chu.

In 237 BC a clique at the Qin court urged King Zheng to expel all foreigners from the state to prevent espionage.

The Jianzhuke Shu (simplified Chinese: 谏逐客书; traditional Chinese: 諫逐客書; pinyin: Jiànzhúkè Shū; lit.: 'Petition against the Expulsion of Guest Officers') was a petition to King Zheng of Qin, written by Li Si in 234 BC. Written in response to an order to expel all officers serving in the State of Qin who were not born in Qin.

King Zheng finally accepted Li Si's suggestion and withdrew the order. Twenty years later, King Zheng unified ancient China and became the first Emperor of all China.

 

[antonius123]

Even though I am disappointed in Xi's lack of will to retaliate against Trump, Taiwan, Hong Kong protesters, and Australia (although there are baby steps in Australia case), I am extremely impressed in his strength and foresight of his domestic policy.

China is going to invest $1.4T for the next 6 years to build up AI, Data Center, High Speed rail, Industrial IoT, 5G Base Stations, Ultra-High Voltage, and EV Charging Stations, to get China out of the current economic crisis.

Compare to what USA do. US government just give money to people so they get paid while staying home.

One country just give free money to people, no productivity, no goods were produced. Another country invest for the technology for the next 50 years.

Average American is sitting home watching TV, drinking beer while getting paid, while many Chinese lost their jobs right now. American government waste their money now while Chinese government invest for the future.

I have no doubt which country will come out ahead in 6 years...

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Now the article:
https://finance.yahoo.com/news/china-got-plan-seize-world-210000558.html

China’s Got a New Plan to Seize the World’s Tech Crown From the U.S.

Bloomberg News
BloombergMay 20, 2020

(Bloomberg) -- Beijing is accelerating its bid for global leadership in key technologies, planning to pump more than a trillion dollars into the economy through the rollout of everything from wireless networks to artificial intelligence.

In the masterplan backed by President Xi Jinping himself, China will invest an estimated $1.4 trillion over six years to 2025, calling on urban governments and private tech giants like Huawei Technologies Co. to lay fifth generation wireless networks, install cameras and sensors, and develop AI software that will underpin autonomous driving to automated factories and mass surveillance.

The new infrastructure initiative is expected to drive mainly local giants from Alibaba and Huawei to SenseTime Group Ltd. at the expense of U.S. companies. As tech nationalism mounts, the investment drive will reduce China’s dependence on foreign technology, echoing objectives set forth previously in the Made in China 2025 program. Such initiatives have already drawn fierce criticism from the Trump administration, resulting in moves to block the rise of Chinese tech companies such as Huawei.

“Nothing like this has happened before, this is China’s gambit to win the global tech race,” said Digital China Holdings Chief Operating Officer Maria Kwok, as she sat in a Hong Kong office surrounded by facial recognition cameras and sensors. “Starting this year, we are really beginning to see the money flow through.”

The tech investment push is part of a fiscal package waiting to be signed off by China’s legislature, which convenes this week. The government is expected to announce infrastructure funding of as much as $563 billion this year, against the backdrop of the country’s worst economic performance since the Mao era.

The nation’s biggest purveyors of cloud computing and data analysis Alibaba Group Holding Ltd. and Tencent Holdings Ltd. will be linchpins of the upcoming endeavor. China has already entrusted Huawei to galvanize 5G. Tech leaders including Pony Ma and Jack Ma are espousing the program.

Maria Kwok’s company is a government-backed systems integration provider, among many that are jumping at the chance. In the southern city of Guangzhou, Digital China is bringing half a million units of project housing online, including a complex three quarters the size of Central Park. To find a home, a user just has to log on to an app, scan their face and verify their identity. Leases can be signed digitally via smartphone and the renting authority is automatically flagged if a tenant’s payment is late.

China is no stranger to far-reaching plans with massive price tags that appear to achieve little. There’s no guarantee this program will deliver the economic rejuvenation its proponents promise. Unlike previous efforts to resuscitate the economy with “dumb” bridges and highways, this newly laid digital infrastructure will help national champions develop cutting-edge technologies.

What BloombergNEF Says

China’s new stimulus plan will likely lead to a consolidation of industrial internet providers, and could lead to the emergence of some larger companies able to compete with global leaders such as GE and Siemens. One bet is on industrial internet-of-things platforms as China aims to cultivate three world leading companies in this area by 2025.

Nannan Kou, head of research

Click here for research

China isn’t alone in pumping money into the tech sector as a way to get out of the post-virus economic slump. Earlier this month, South Korea said AI and wireless communications would be at the core of it its “New Deal” to create jobs and boost growth.

According to the government-backed China Center for Information Industry Development, the 10 trillion yuan ($1.4 trillion) that China is estimated to spend from now until 2025 encompasses areas typically considered leading edge such as AI and IoT as well as items such as ultra-high voltage lines and high-speed rail.

Separate estimates by Morgan Stanley put new infrastructure at around $180 billion each year for the next 11 years -- or $1.98 trillion in total. Those calculations also include power and rail lines. That annual figure would be almost double the past three-year average, the investment bank said in a March report that listed key stock beneficiaries including companies such as China Tower Corp., Alibaba, GDS Holdings, Quanta Computer Inc. and Advantech Co.


Beijing’s half-formed vision is already stirring a plethora of stocks, a big reason why five of China’s 10 best-performing stocks this year are tech plays like networking gear maker Dawning Information Industry Co. and Apple supplier GoerTek Inc. The bare outlines of the masterplan were enough to drive pundits toward everything from satellite operators to broadband providers.

It’s unlikely that U.S companies will benefit much from the tech-led stimulus and in some cases they stand to lose existing business. Earlier this year when the country’s largest telecom carrier China Mobile awarded contracts for 37 billion yuan in 5G base stations, the lion’s share went to Huawei and other Chinese companies. Sweden’s Ericsson got only a little over 10% of the business in the first four months. In one of its projects, Digital China will help the northeastern city of Changchun swap out American cloud computing staples IBM, Oracle and EMC with home-grown technology.

It’s in data centers that a considerable chunk of the new infrastructure development will take place. Over 20 provinces have launched policies to support enterprises utilizing cloud computing services, according to a March note from UBS Group AG. Tony Yu, chief executive officer of Chinese server maker H3C, that his company was seeing a significant increase in demand for data center services from some of the country’s top internet companies. “Rapid growth in up-and-coming sectors will bring a new force to China’s economy after the pandemic passes,” he told Bloomberg News.

From there, more investment should flow. Bain Capital-backed data center operator Chindata Group estimated that for every one dollar spent on data centers another $5 to $10 in investment in related sectors would take place, including in networking, power grid and advanced equipment manufacturing. “A whole host of supply-chain companies will benefit,” the company said in a statement.

There’s concern about whether this long-term strategy provides much in the way of stimulus now, and where the money will come from. “It’s impossible to prop up China’s economy with new infrastructure alone,” said Zhu Tian, professor of economics at China Europe International Business School in Shanghai. “If you are worried about the government’s added debt levels and their debt servicing abilities right now, of course you wouldn’t do it. But it’s a necessary thing to do at a time of crisis.”

Digital China is confident that follow-up projects from its housing initiative in Guangzhou could generate 30 million yuan in revenue for the company. It’s also hoping to replicate those efforts with local governments in the northeastern province of Jilin, where it has 3.3 billion yuan worth of projects approved. These include building a so-called city brain that will for the first time connect databases including traffic, schools and civil matters such as marriage registry. “The concept of smart cities has been touted for years but now we are finally seeing the investment,” said Kwok.

A big hit for US since the tech decoupling will prevent US tech companies involvement in this huge project.

But actually US can follow China path, with unlimited cash from FED, US can stimulate her economy by hugely invest in technology infrastructure like this surpassing China.