So far the Biden administration’s approach to China—on tariffs or anything else—hasn’t been much different than the Trump administration’s, though the rhetoric has changed.
Secretary of State Antony Blinken said the U.S. isn’t trying to contain China but get it to follow a “rules-based order.”
Of course, those rules have been largely written by the U.S. and western allies. One area where China is trying to pen standards is in the area of technology. China’s Standards 2035 is its effort to set the rules governing new technologies such as 5G/6G internet, internet of things, quantum networks, and blockchain.
“Standards help the incumbent. Once established, they are difficult to change and steer economic, technological and environmental trends, as well as transform both commercial and national security spheres,” points out a new report from Morgan Stanley. “There is risk of a power shift in certain emerging industries and with that comes a rethink of the valuation multiples of today’s dominant companies.”
China, the report points out, submitted 830 technical documents related to 5G, and in an area where it is weak, semiconductors, is closing the gap on third-generation materials such as gallium nitride and silicon carbide that are crucial in power electronics.
In autonomous driving testing in California, Baidu, Hong Kong start-up AutoX and Toyota Motor -backed Pony.ai are among the top five in terms of miles per disengagement, which means miles driven before a human had to get involved.