China is winning the artificial intelligence Race

Not only is China growing faster than any other big economy; it’s poised to take the lead in artificial intelligence applications to manufacturing, health care and transportation, leapfrogging the West in key new technologies. President Joe Biden’s chief Asia advisor Kurt Campbell says the U.S. should “balance between cooperation and competition” with China. We’re already far behind on the competition for leadership in a wide range of AI applications—an issue with urgent implications for American policy.
China is well on its way to building a planned 10 million 5G mobile base stations by 2024, wiring virtually the whole country for game-changing technologies. It has already deployed some of them in its response to COVID-19. Sensors connected to smartphones and linked to centralized databases monitor the vital signs of hundreds of millions of Chinese citizens and visitors in real time. Three-dimensional facial imaging allows these systems to monitor the mobility of people and contact with others. Artificial intelligence algorithms extract information from these data to identify potential viral hotspots and guide forensic testing and preventive quarantines. China’s effective control over the virus—despite some localized outbreaks—provides further impetus to speed up the adoption of digital heath technology.
The 3D facial recognition component of China’s public health initiatives have drawn international concern. U.S. commentators focus on its implications for social control, but the technology has already been incorporated into a wide range of remote services. With 3D facial recognition, people in China can board trains, buy produce and obtain medical services without physical contact. The majority of the Chinese population is willing to accept the possibility of invasions of privacy provided the benefits are clear.
Many of these public health technologies are here to stay. In the next few years, China is expected to deploy an advanced medical system that uses big data and sensors. Key to this new health system will be robots, which will rely on big data to conduct various tasks, including elderly home care.
Robots will also be vital in manufacturing. The nearly instantaneous response time of 5G broadband allows them to share information and even devise autonomous production processes on the factory floor.
Manufacturing for high-technology devices such as smartphones is already highly automated, and no other country can match the high quality level and low manufacturing cost of China’s system. Because China includes both government agencies and private corporations in its high-tech manufacturing sector, the competitive barriers against other countries are rapidly increasing.
Another emerging application of AI in China is “smart farms,” which run on local 5G networks that gather information from sensors at the level of individual plants. Drones and driverless vehicles apply water, fertilizer and pesticides as needed. Huawei is already exporting smart farm technology to Brazil, Malaysia and Turkey.
China is also becoming the global leader in autonomous transportation. The country intends to shift to self-driving passenger and delivery vehicles by 2035. This is an extremely ambitious goal that will require large investments.
Autonomous transportation will require the coordination of automobiles, buses, local trains, high-speed trains and other forms of transit. Entirely new cities are being built to support autonomous transportation, though converting existing cities will be the greater challenge. AI will play a key role. Baidu, Alibaba Group, Tencent and others are collaborating with Chinese automobile companies to develop vehicles, while a new generation of drones is under development for goods transport.


