China The Bigger Loser In Tech Decoupling With U.S.

Decoupling between the United States and China has caused losses to both sides but China has lost much more than its rival, says a report by a research institute of Peking University. China still has a long way to go towards being a technologically powerful country and the United States still leads the world in technology, according to the university’s Institute of International and Strategic Studies that compared the technological strengths of the two countries in three areas—information technology, artificial intelligence and aerospace. According to the report, technology decoupling dealt a heavy blow to China’s information technology industry, including the impact on sanctioned companies and university students who are banned from studying in the United States, as well as on companies that are not yet sanctioned. In the artificial intelligence domain, the United States has an apparent advantage in originality and innovation in basic research and is far ahead in core industrial technologies such as chips, algorithms, and machine learning, the report says. The Chinese civil aviation industry is at a distinct disadvantage in that it needs to purchase complete aircraft or core components from the United States and other Western countries, as per the report.