Advanced Technologies - for Industry - international reports Advanced technology landscape and related policies in China
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
May 2021
1
Advanced Technologies
for Industry – international reports
Advanced technology landscape and related policies in
China
ATI international report on China
This report was prepared by Heidi Heimberger and Maria Karaulova; Fraunhofer ISI - with support
from Henning Kroll, Fraunhofer ISI and Kincsö Izsak, Technopolis Group.
EUROPEAN COMMISSION
European Innovation Council and SMEs Executive Agency (EISMEA)
Unit I.02.2 — SMP / COSME Pillar
E-mail: EISMEA-SMP-COSME-ENQUIRIES@ec.europa.eu
Directorate General for Internal Market, Industry, Entrepreneurship and SMEs
Unit D.2 — Industrial forum, alliances, clusters
E-mail: GROW-ATI@ec.europa.eu
European Commission
B-1049 Brussels
LEGAL NOTICE
The information and views set out in this report are those of the author(s) and do not necessarily reflect the official
opinion of EISMEA or of the Commission. Neither EISMEA, nor the Commission can guarantee the accuracy of the
data included in this study. Neither EISMEA, nor the Commission or any person acting on their behalf may be held
responsible for the use, which may be made of the information contained therein.
More information on the European Union is available on the Internet (http://www.europa.eu).
PDF ISBN978-92-9460-715-7 doi: 10.2826/573690 EA-03-21-300-EN-N
© European Union, 2021
May 2021
ATI international report on China
Table of Contents
Introduction ........................................................................................................................ 4
Section 1 .............................................................................................................................. 5
1 Overall performance in advanced technologies .............................................................. 5
1.1 Patent applications .................................................................................................. 5
1.2 International competitiveness ................................................................................. 6
1.3 Startup and scaleup activity .................................................................................... 6
Section 2 .............................................................................................................................. 8
2 Analysis of selected technology ecosystems: Artificial Intelligence and Big Data .......... 8
2.1 Major players ........................................................................................................... 8
2.2 Underlying conditions .............................................................................................11
2.3 Policies, strategies and initiatives ..........................................................................13
2.3.1 Major projects .................................................................................................... 14
2.4 Lessons for Europe .................................................................................................15
Section 3 .............................................................................................................................17
3 Advanced Manufacturing and Robotics .........................................................................17
3.1 Major players ..........................................................................................................17
3.2 Underlying conditions .............................................................................................19
3.3 Policies, strategies and initiatives ..........................................................................21
3.3.1 Major projects .................................................................................................... 23
3.4 Lessons for Europe .................................................................................................23
Section 4 .............................................................................................................................25
4 COVID-19 in China: Impact, response and recovery .....................................................25
4.1 Impact of COVID-19 in China ..................................................................................25
4.1.1 COVID-19 in China .............................................................................................. 25
4.1.2 Overall economic impact ...................................................................................... 26
4.2 China's COVID-19 related government restrictions.................................................27
4.3 Economic measures ................................................................................................28
4.4 Pandemic Technology Policy ...................................................................................30
4.5 The impact of COVID-19 on Advanced Technologies in China .................................31
4.5.1 Overall impact on Advanced Technologies .............................................................. 31
4.5.2 Use of Advanced Technologies to combat the pandemic ........................................... 32
4.5.3 New Infrastructure, Supply Chains and Tech Transfer .............................................. 34
Bibliography .......................................................................................................................35
About the ‘Advanced Technologies for Industry’ Project .....................................................45
May 2021
3
ATI international report on China
Section
Introduction
The objective of the international country reports is to explore the technology and policy landscape of
selected non-European countries. Country performance in advanced technologies is presented based on
patent, trade and investment data. This particular report is an update and extension of the China report
published in 2020 (available at https://ati.ec.europa.eu/reports/international-reports/report-china-
technological-capacities-and-key-policy-measures) and zooms into two technology ecosystems notably
into Artificial Intelligence/Big Data and Advanced Manufacturing/Robotics. The reason why these fields
have been selected is that they represent technologies where China has been developing particularly
fast recently and important lessons can be drawn for the EU. The analysis relies on the data collected
within the ATI project complemented with expert opinion.
The starting point of this analysis has been sixteen advanced technologies that are a priority for
European industrial policy and that enable process, product and service innovation throughout the
economy and hence foster industrial modernisation.
Advanced technologies are defined as recent or future technologies that are expected to substantially
alter the business and social environment and include Advanced Materials, Advanced Manufacturing,
Artificial Intelligence, Augmented and Virtual Reality, Big Data, Blockchain, Cloud Technologies,
Connectivity, Industrial Biotechnology, the Internet of Things, Micro and Nanoelectronics, Mobility,
Nanotechnology, Photonics, Robotics and Security. The full methodology behind the data calculations is
available on the ATI website: https://ati.ec.europa.eu/reports/eu-reports/advanced-technologies-
industry-methodological-report.
The report is structured as the following:
• The first section outlines the overall performance of China in terms of technology generation (patent
applications), trade and venture capital data.
• The second section dives into the Chinese ecosystem in the field of Artificial Intelligence and Big
Data.
• The third section presents the Chinese Advanced Manufacturing and Robotics ecosystem.
• The last section analyses the impact of and economic responses to the COVID-19 pandemic.
May 2021
4
ATI international report on China
Section 1
1 Overall performance in advanced technologies
1.1 Patent applications Figure 2: Trends in the share in global transnational
patent applications in China (2008-2018)
Over the past decade the technological
performance of China has improved rapidly. An
analysis of China's share in worldwide 30% Technology
transnational patent applications helps to assess
AI
Robotics
and benchmark its technological performance. 25% MNE
Figure 1 provides an overview of the Chinese
Share of global patent applications
Photonics
share of worldwide transnational patent Security
applications in advanced technologies compared 20% Big Data
to that of the EU27's Member States in 20181.
IT for Mobility
Adv. Manufact.
Figure 1: Share in global transnational patent 15% IoT
applications in advanced technologies Ind Biotech
(2018) Nanotech
10% Adv. Materials
30%
20% 5%
China
10%
0%
2008 2010 2012 2014 2016 2018
0%
30% Year
Source: Fraunhofer ISI, based on EPO PATSTAT
EU27
20%
The analysis of China's technological specialisation
(RPA-index2) as visualised in Figure 3
10%
0% demonstrates China's relative focus of activity in
all twelve advanced technologies, compared to
AI
Robotics
MN Electronics
Photonics
Security
Big Data
IT for Mobility
Adv Manufact.
IoT
Ind Biotech
Nanotech
Adv Materials
that of the EU27.
The findings of the analysis confirm China's
technological focus on information technologies
(see also Figure 1) with outstanding specialisation
in Robotics and Artificial Intelligence as well as -
Source: Fraunhofer ISI, based on EPO PATSTAT to a lesser extent - Micro- and nanoelectronics.
The EU27, in contrast, displays a negative
As seen in Figure 1, the EU27 continues to hold a specialisation in all four of these fields.
higher share of global patent applications than
China in many advanced technologies. However,
China is not far from catching up with Europe in
Photonics, Security and has done so in the
advanced technology of Big Data already.
Moreover, China's share in global patenting now
clearly exceeds that of Europe in Micro- and
nanoelectronics (MNE), Robotics, as well as
Artificial Intelligence.
Patenting trends over time show the force of
Chinese technology and its increasing dominance
on the global patent landscape. Over the period
from 2008 to 2018 patent applications filed by
Chinese applicants increased most in Artificial
Intelligence (see Figure 2).
1
The patent analysis reflects the owner (applicant) of the 2
The RPA-Index illustrates the relative specialisation on a scale
technology, since patents have been localised based on the from -100 to +100, putting the share of a specific field in national
location of their legal owner. applications in relation to the global average share.
May 2021
5ATI international report on China
Figure 3: Technological specialisation RPA-index of China exports more goods related to advanced
China and EU27 (2018) technologies for industry than the European Union
in all fields - except for Advanced Manufacturing
Adv. Manufact.
MN Electronics
Adv. Materials
IT for Mobility
technologies.
Ind Biotech
Photonics
Nanotech
Figure 5 visualises the trade balance3 in relation to
Robotics
Big Data
Security
the total trade volume of China and the EU27
IoT
countries in 2018.
AI
40
Figure 5: Trade balance in relation to overall trade
volume (exports - imports) (2018)
20
MN Electronics
Adv Manufact.
IT for Mobility
Adv Materials
Ind Biotech
0
Photonics
Nanotech
Robotics
Big Data
%
Security
-20
IoT
AI
-40
80%
-60 60%
Colour legend 40%
China
EU27 20%
Source: Fraunhofer ISI, based on EPO PATSTAT 0%
1.2 International competitiveness -20%
Trade measures are a common indicator of global -40%
competitiveness, as they document the
attractiveness of a country's products beyond the -60%
home market. Total exports provide evidence -80%
about a country's role as a producer, and trade Colour legend
balance captures its sovereignty in certain areas China
of production. EU27 extra
Figure 4: Export share in world total (2018) Source: Fraunhofer ISI, based on UN COMTRADE
Note: ‘EU27-extra’ refers to exports to non-EU countries,
Nanotechnology i.e. competitiveness-based exports outside the single market
Ind Biotech
AI China displayed a large relative trade surplus in
IoT 2018 in goods related to Industrial Biotechnology,
Adv Materials Nanotechnology, Advanced Materials and the
Photonics Internet of Things. The analysis shows, however,
BigData a rather notable trade deficit in terms of total trade
Mobility volume in Micro and nanoelectronics (over 60%),
Security Advanced Manufacturing, Security and Robotics.
Robotics The European Union had significant relative trade
MNE deficits almost in all fields related to advanced
Adv Manufact. technologies - with the exception of Advanced
0% 5% 10% 15% 20% 25% Manufacturing technology.
1.3 Startup and scaleup activity
Colour legend Figure 6 analyses private and venture capital (VC)
China investments in advanced technologies in China. It
EU27 illustrates the number of investment deals
concluded in 2020 in advanced technologies as
Source : Fraunhofer ISI, based on UN COMTRADE
Note: ‘EU27-extra’ refers to exports to non-EU countries,
well as the number of active startups4 in 2020 in
i.e. competitiveness-based exports outside the single market China based on Crunchbase5 data.
The view is filtered on China, the export shares of which range
from 4.3 (AMT) to 25.8% (Nanotechnology) The analysis suggests that the number of funding
rounds was the highest in Biotechnology followed
Figure 4 displays the share of global technological by Artificial Intelligence and Advanced
exports in 2018. It clearly demonstrates that
3
Exports - Imports merged dataset available in Crunchbase and Dealroom.
4
Startups have been defined as companies founded after 2015. Crunchbase provides information on venture capital backed
5
Private equity, venture capital investment and related innovative companies.
innovative start-up creation have been explored based on a
May 2021
6ATI international report on China
Manufacturing in China in 2020. Startups have Figure 6: The number of funding rounds in advanced
been most active in the area of AI and Advanced technologies and startups, China (2020)
Manufacturing, although 2020 has not seen many Biotechnology
newly founded startups except for AI (as captured AI
by the LinkedIn database). The data suggest that Adv Manufacturing
investors focused on ventures already well Robotics
established and had a relatively high average MNE
investment amount per company. Big Data
Cloud technology
Mobility
IoT
Blockchain
Cybersecurity
Photonics
AR/VR
Nanotechnology
Adv Materials
0 50 100 0 200 400 600
Number of funding rounds in Number of startups active in
2020 2020
Source: Technopolis Group based on Crunchbase
May 2021
7ATI international report on China
Section 2
2 Analysis of selected technology ecosystems: Artificial
Intelligence and Big Data
2.1 Major players
Table 1: Major government stakeholders in China’s AI and Big Data development
Scope Name and resulting organisations/initiatives, if applicable
Ministries Ministry of Science and Technology (MOST)
- New Generation AI Strategy Advisory Committee
- National New Generation AI Governance Expert Committee
National Development and Reform Commission (NDRC)
Ministry of Industry and Information Technology (MIIT)
- China Academy of Information and Communications Technology (CAICT)
Other Shenzhen Research Institute of Big Data (SRIBD)
institutional
players
Authorities for Chinese National Intellectual Property Administration (CNIPA)
regulation and Standardisation Administration of China (SAC)
Intellectual - National Artificial Intelligence Standardisation General Working Group
Property Rights - National Artificial Intelligence Standardisation Expert Advisory Group
China Electronics Standardisation Institute (CESI)
Source: authors.
Ministries nationwide science and technology development,
support scientific research, and develop science
In China, various state organisations as well as
parks.7 The MOST has approved eleven pilot zones
institutions are engaged in the development of
for innovative AI development, e.g. Beijing,
strategies and initiatives in the field of Artificial
Shanghai and Shenzhen, to develop local versions
Intelligence (AI) and Big Data. Alongside the
of the governance principles and regulations for
highest executive body of the Chinese state
AI.8 At least two committees closely related to AI
administration, the State Council, headed by
have been established within the MOST.
Premier Li Keqiang, subordinate ministries are also
actively involved. The MOST, the NDRC and the The New Generation AI Strategy Advisory
MIIT in particular appear to play leading roles for Committee was founded in 2017 and aims at
AI and Big Data. For example, the State Council, providing input to the Chinese government on AI-
which is responsible for implementing the related science and technology development plans
principles and policies of the Communist Party of as well as relevant projects.9 Another committee
China as well as the regulations and laws passed related to AI, the National New Generation AI
by the National People's Congress launched the Governance Expert Committee, was established
mega-project called ‘New Generation of AI by the MOST in 2019, and announced eight
Development Plan’ as well as the ‘Outline for principles for the governance of AI in 2020 to
Actions to Promote Big Data Development’.6 ‘develop responsible AI’. These principles
emphasise that AI developments should be driven
The Ministry of Science and Technology (MOST)
by the goal of improving the general well-being of
was originally established in 1959 as the National
humanity. Accordingly, human rights, privacy and
Science Council but was reorganised and renamed
fairness are emphasised as well as the relevance
in 2014. The ministry, which is directly
of transparency, collaboration and agility in
subordinate to the State Council, frames
dealing with new risks.10 11
guidelines and policies in addition to setting out
the vision and strategies for China's national Originally established in 1952 as the State
economic and technological development. The Planning Commission, the agency was reorganised
three main tasks of the ministry are to promote and has been operating as the National
6
People's Daily Online 2006. 9
Murphy 2020a.
7
MOST 2020. 10
Roberts et al. 2020.
8
Jia 2020. 11
chinainnovationfunding.eu 2020.
May 2021
8ATI international report on China
Development and Reform Commission (NDRC) innovation centres are part of the CAICT, including
since 2003.12 The NDRC is directly subordinate to the New Generation AI Institute in Nanjing, the 5G
the State Council and is responsible for the and AI Research Centre in Hangzhou and the
formulation and implementation of strategies as Central Big Data Research Innovation Centre in
well as annual and development plans for national Zhengzhou.22 The ‘Cloud Computing and Big Data
economic and social development. It submits Research Institute’, which was established in
these development plans to the National People's 2017, is one of the core business departments of
Congress on behalf of the State Council.13 In the the CAICT. It deals with the emerging
field of Big Data and AI, the NDRC published a list technologies, business models and industries of
of selected projects in 2017, the 'List of 2018 the internet. The institute conducts research in the
Internet+, AI and Digital Economy Experiments areas of Big Data and AI, builds various platforms,
Major Projects Recipients'. It features projects in and tests and evaluates various products and
the field of natural language processing and health services. In addition, scientific projects are carried
data exchange, for example. A study estimates out on a national level as well as with industry
the role of the companies awarded by the NDRC partners.23
to be substantial for both Big Data and AI in
Other institutional players
China.14 Additionally, the NDRC leads the
development of China’s national Five-Year Although there are certainly other institutions
Plans.1516 relevant to AI and Big Data developments in
China, the SRIBD stands out in particular.
Another influential player for Big Data and AI in
China is the Ministry of Industry and Information In 2016, the government of Shenzhen established
Technology (MIIT). Established in 2008 as a the Shenzhen Research Institute of Big Data
department under the State Council, it is (SRIBD). The institute is designed to lead and
responsible for managing the industrial sectors coordinate the research and development of Big
and information technology industry in China and Data innovations and focuses on basic theories,
is considered ‘the nation’s top industry novel computing systems of the future, and
regulator’.17 The State Council lists the following intelligent application technologies in the field of
matters among the main tasks of MIIT: Big Data. Its vision is to become a globally
determining China's industrial planning, policies recognised research institute in the field of Big
and standards; supervising the daily operation of Data with its own Intellectual Property rights and
industries; promoting the development of large- outstanding core technologies.24
scale technological equipment and innovations in
communications; leading the construction of Authorities for regulation and IPR
information systems; and ensuring China's
With a view to intellectual property rights (IPR)
information security.18 Given its responsibilities,
and standards in China's AI and Big Data agenda,
the MIIT has initiated various plans and strategies
key responsibilities rest with the CNIPA and,
in the field of AI and Big Data, including the 'Big
regarding standards, the SAC and the CESI.
Data Industry Development Plan' and the 'Three-
Year Action Plan for Promoting Development of a The Chinese National Intellectual Property
New Generation AI Industry'. Administration (CNIPA), which is responsible for
the organisation and coordination of the protection
Founded in 1957, the - China Academy of
of IPR in China25, amended the guidelines for
Information and Communications Technology
patent examination. They now include
(CAICT) is a subordinate institute to the MIIT19,
examination rules for claims characterised by
and plays an important role in telecommunications
algorithmic features, with a particular focus on
and the internet. It acts as a ‘specialised think-
emerging technologies, including Big Data and AI,
tank for the government’ as well as an ‘innovation
for which new standards are defined. The revised
and development platform for the industry’.20
rules have been in force since February 2020. For
Emerging technology issues on the agenda include
AI, only inventions created with the help of AI can
AI, Big Data, 4G/5G, Cloud Computing, etc. The
currently be patented, while inventions developed
CAICT supports the development of policies,
independently of AI are not permitted, as
including industry plans (such as the Big Data
Industry Development Plan), develops standards
and certification, and conducts a variety of
technology and industry studies.21 A variety of
12
United Nations Economic and Social Commission for Asia and 18
State Council 2014.
the Pacific 2012. 19
The MIIT operates at the same level as the MOST and is
13
National Development and Reform Commission 2008a. subordinate to the State Council in China.
14
Grossman et al. 2020. 20
CAICT 2020.
15
China’s Five-Year Plans are the most important guiding 21
Jiang 2018.
documents for the economic and social policy direction of China, 22
CAICT 2020.
and have been developed since 1953. 23
CAICT 2020.
16
Haacke 2014. 24
Shenzhen Research Institute of Big Data 2020.
17
Si 2019. 25
US-China Business Council 2018.
May 2021
9ATI international report on China
standards for their examination have yet to be 2020, the SAC announced the establishment of an
established.26 27 AI sub-technical committee (SAC/TC 28/SC 42),
mainly reponsible for the development and
The General Administration of Quality Supervision,
revision of national standards in AI.31 32
Inspection and Quarantine (AQSIQ), a ministerial
administrative body directly under the State In addition to the technical committees, China has
Council, is responsible for the standards system in established organisational mechanisms aimed at
China. In turn, the AQSIQ heads the Certification the overall coordination of measures for AI-
and Accreditation Administration of China (CNCA) standardisation. For this purpose, the SAC
as well as the Standardisation Administration of approved two groups in 2018: The National AI
China (SAC).28 The latter represents China in Standardisation General Working Group, which is
various standardisation organisations at national responsible for the coordination, planning and
and international level, including the International layout of a variety of AI standardisation work in
Organisation for Standardisation (ISO) and the China. Its office is located at CESI. Additionally,
International Electrotechnical Commission (IEC).29 the National AI Standardisation Expert Advisory
Group was established, which is an expert group
Another important responsibility for
of AI-experts and scientists, responsible for advice
standardisation in AI and Big Data lies with the
related to AI standards. The expert group leads
China Electronics Standardisation Institute
the work of the National AI Standardisation
(CESI), a think-tank subordinate to the MIIT,
General Working Group.33
which is specifically responsible for the
standardisation of the IT and electronics industry Major business actors
in China. CESI manages a number of China’s
China is home to a number of globally leading AI
counterparts to IEC and ISO Technical Committees
and Big Data companies. Next to the ‘big four’,
and Subcommittees. The National Information
Baidu, Alibaba, Tencent (collectively referred to as
Technology Standardisation Technological
‘BAT’34 35) and Alibaba, some interesting start-ups
Committee (SAC/TC 28) is responsible for
show a strong track record. Table 2 shows the
developing AI-standards in China. It is considered
major companies in China’s AI and Big Data
the counterpart to the ISO/IEC Joint Technological
landscape.
Committee One. SAC/TC 28 also includes a
working group on Big Data standards.30 In April
Table 2: Selected list of major Chinese business actors in AI and Big Data
Company Name Company Information
Tencent Holdings - Established in 1998
Ltd.36 - Headquarters: Shenzhen, Guangdong province
- Leadership in speech and image recognition due to Big Data developed in its
social network; expansions also into medical Research & Development (R&D)
through image recognition and analysis
- Focus: digital communication and social platforms, advertising, financial
technologies and business services
iFlyTek Co., Ltd.37 - Established in 1999
- Partially state-owned
- Headquarters: Hefei, Anhui province
- Focus: intelligent speech and AI; including research in speech and languages,
natural language understanding, machine learning, machine reasoning,
adaptive learning
Baidu Co., Ltd.38 - Established in 2000
- Headquarters: Beijing, Hebei province
- Analogous to Google
- New Big Data and AI developments: ‘Baidu Cloud’ produces, analyses and tags
data; the algorithm platform ‘Baidu Brain’ is open to internal use as well as
third parties
- Focus: platforms connect users to information and services via various
channels; online marketing
Alibaba Group Holding - Established in 2007
Ltd.39 - Headquarters: Hangzhou, Zhejiang province
26
Wei 2020. 33
China Electronics Standardization Institute 2020a.
27
Quan 2020. 34
Jing and Dai 2017.
28
China Electronics Standardization Institute 2020a. 35
Jia et al. 2018.
29
International Organization for Standardization 2020. 36
Tencent 2020.
30
China Electronics Standardization Institute 2020a. 37
iFlyTek 2020.
31
China Electronics Standardization Institute 2020b. 38
Baidu 2020.
32
China Electronics Standardization Institute 2020a. 39
Alibaba Group 2020.
May 2021
10ATI international report on China
Company Name Company Information
- AI strategy based on research of the Institute of Data Science and Technologies
(iDST): ‘ET Brain’ platform available to companies to apply AI practically; AI
labs; AI in order to improve Alibaba’s e-commerce and payment service
- Focus: e-commerce, cloud computing, digital media and entertainment,
innovation initiatives, payment services and financial services
Startups
Megvii Technology - Established in 2011
Ltd.40 - Headquarters: Beijing
- Large research focus; operator of the world's biggest computer vision research
institute
- Focus: core competence deep learning with a focus on the integration of AI
and IoT for people, cities and supply chains
SenseTime Group - Established in 2014
Ltd.41 42 - Headquarters: Hong Kong
- World’s most valuable AI startup
- Various technological breakthroughs, including the development of the first AI
system to achieve better detection accuracy than the human eye
- Focus: development of AI technologies, provider of AI algorithms
iCarbonX Co., Ltd.43 - Established in 2015
- Headquarters: Shenzhen, Guangdong province
- Tencent led iCarbonX series A financing
- Platform that combines biological measures with experiential data from people
worldwide and mines it for signals of disease, health, ageing based on
advanced AI
- Focus: AI-based healthcare platform
CloudWalk - Established in 2015
Technology Co., Ltd.44 - Headquarters: Guangzhou, Guangdong province
45
- Listed on the US Entity List due to US claims of complicity in human rights
violations and abuses, restricting its access to US technology.
- Focus: Integration of multidimensional recognition (visuality, language,
environment), to create an intelligent decision-making system and realise the
closed loop of AI technology.
Source: authors.
2.2 Underlying conditions constantly generated data. Access to this available
data is considered one of the enablers for China's
Looking at the general conditions for the
future leadership in AI.
development of AI and Big Data in China, three
aspects stand out as being of special relevance: Protection and regulation
the availability of data, protection and regulation,
For a long time, China did not have any law
and regional development areas.
ensuring basic data processing principles. The
Availability of data Chinese data protection system was mainly
criticised for a lack of definitions, the non-
Over time, a digital ecosystem for Chinese tech
existence of the concept of individual consent, the
companies has developed in a partially protected
absence of references to the rights of information,
market with a large number of internet users.
access and rectification, and the lack of a
China has the largest number of internet users
supervisory authority.46
worldwide. In June 2020, over 939 million citizens
were connected to the internet, while more than The 'Cyber Security Law' has been in force since
932 million used mobile internet. As the number July 2017 to protect critical infrastructures and
of internet users increases, those connected make data from unauthorised access. It sets out rules
extensive use of digital technologies and mobile for the protection of IT infrastructures and
access, using the internet for a variety of reasons systems, data management for public services as
e.g. for payment, travel or communication. well as compliance by economic and social actors.
Consequently, China has huge amounts of Due to the barriers caused by strict cyber and data
40
Megvii 2020.
41
SenseTime 2020.
42
Marr 2019.
43
iCarbonX 2020.
44
CloudWalk 2020.
45
U.S. Department of Commerce 2020.
46
Hert and Papakonstantinou 2015.
May 2021
11ATI international report on China
security regulations, foreign companies' access to To drive the development of AI in China, in
China's digital and telecommunication markets addition to national level efforts, China's
remains limited.47 Another step towards the government is also reaching out to individual
protection of personal information by law was provinces, cities and municipalities in order to
unveiled in October 2020, with the draft of a promote the AI industry at the local level.57 As of
'Personal Information Protection Law' (PIPL). 48 March 2020, a total of eleven ‘AI Pilot Zones’ had
The PIPL is considered to have similarities to the been publicly announced and established by the
European Union's data protection law (General MOST in Beijing, Shanghai, Hangzhou, Hefei,
Data Protection Regulation).49 Shenzhen, Tianjin, Deqing County, Chengdu,
Chongqing, Jinan and Xi’an.58 As part of this effort,
A nationwide 'Social Credit System' (SoCs) is
the provinces and municipalities have developed
expected to become mandatory, which will
AI plans, which set their individual, local targets.
monitor companies, organisations and individuals
Beijing, Shanghai and Shenzhen, in particular,
through a big-data-based control mechanism and
stand out as tech hubs and are home to some of
thus enforce compliant and conformist behaviour.
China's largest digital pioneers (e.g. Baidu and
The SoCs has been in planning since 2014, it was
Tencent). By 2020, Shanghai's plan aims to
piloted in many programmes and its main
generate a core AI industry of ¥100 bn
framework and mechanisms were established in
(€12.81 bn59). To achieve this, AI industrial zones
2020. It is seen as a powerful instrument of
and agreements between leading AI companies
control over companies and people with the help
have been established in several parts of the city.
of digital technologies.50 51
In Beijing, the AI hub Zhongguancun stands out
Pilot zones for innovative development and, in response to Shanghai's developments, a
new AI industry park was announced in 2018. In
Guiyang City (in Guizhou province) has proactively addition to these prominent AI locations, Hefei is
promoted the integration of AI in its economy also a solid hub for AI development, with the AI
since 2014. In 2017, the city set itself a series of base 'China Speech Valley' providing a strong
goals to be achieved by 2020 in order to become centre for speech recognition technologies in
China’s ‘Big Data Valley’: reach the capacity to China. Beyond that, China’s more reserved
store one exabyte of data, attract more than provinces, such as Liaoning, also have ambitious
10 000 Big Data companies and over 100 000 Big AI plans to join the regional AI developments.60
Data experts, and generate over ¥100 bn
(€12.81 bn52) through Big Data companies. The China also places a special focus on attracting AI
first funding round was projected to reach ¥10bn talent and companies. For example, an article by
(€1.28 bn53). To promote these ambitious plans, the Mercator Institute for China Studies (MERICS)
28 scientific research organisations and 23 61 mentions rewards offered to research
incubators as well as investment agencies have institutions and companies for AI professionals
been set up in the field of Big Data in the Guizhou settling in specific regions, or initiatives for
province.54 55 Since then, Guiyang has undergone recruiting AI professionals from abroad. A map
rapid development and is respected worldwide, prepared by MERICS illustrates the provincial and
which has attracted several offices of municipal plans for AI development in China (see
internationally leading companies such as Alibaba, Figure 7).
Tencent, Apple and Intel to the city.56
47
Shi-Kupfer and Ohlberg 2019. 54
China Daily 2017.
48
Holzmann and Meinhardt 2020. 55
Guiyang Government 2020.
49
Zhang and Chen. 56
Shenggao 2019.
50
Shi-Kupfer and Ohlberg 2019. 57
Ives and Holzmann 2018.
51
Sutherland 2020. 58
Center for Security and Emerging Technology 2020.
52
The amount in euro was calculated based on the ECB’s official 59
The amount in euro was calculated based on the ECB’s official
euro foreign exchange reference rates for 2017. euro foreign exchange reference rates for 2020.
53
The amount in euro was calculated based on the ECB’s official 60
Ives and Holzmann 2018.
euro foreign exchange reference rates for 2017. 61
Ives and Holzmann 2018.
May 2021
12ATI international report on China
Figure 7: Provincial and municipal plans for AI development in China
Source: Ives and Holzmann, 2018.
2.3 Policies, strategies and initiatives Governance Principles for the New
Generation AI - developing responsible AI
In line with its general industrial policy, China is
pursuing a top-down approach to promote the The MIIT published ‘Governance Principles for the
development of AI and Big Data in the country by New Generation AI’ in 2019, which were
investing lots of capital in the relevant areas, formulated by the National Governance
devoting a lot of human resources to them and Committee for the New Generation AI. This was
setting other incentives.62 A variety of city-level triggered by global AI developments that have a
funds for AI and Big Data were identified. profound impact on daily life, possess new
capabilities and will bring about major changes in
Shanghai AI Investment Fund
the future. The document lists eight principles,
In 2019, Shanghai launched its AI Investment which are addressed to all actors involved in AI
Fund to support the city’s transformation into an development:65
innovative AI ecosystem by 2021. This city-level
1. Harmony and human-friendly
fund is managed by a group of government-led
2. Fairness and justice
firms as well as private equity enterprises, has
3. Inclusion and sharing
initial funds of ¥10 bn (€1.28 bn63) and plans to
4. Respect for privacy
increase this to ¥100 bn (€12.79 bn63). Four AI
5. Safety and controllability
institutes were introduced at the ceremony,
6. Shared responsibility
including the Shanghai AI Smart Algorithm
7. Open and collaboration
Institute. A guide to Shanghai's AI development
8. Agile governance
revealed plans to start 10 AI-labs between
scientific institutions and firms, establish 15 Big Action Plan to Promote Big Data
Data labs and turn Shanghai into an AI chip Development (2015)
hotspot. Shanghai also aims to double its AI talent
To launch the ‘startup-phase’ for the national Big
pool within three years to 200 000 workers. In
Data strategy development in China, the State
addition to loans guaranteed by major banks to
Council issued an ‘Outline for Actions to Promote
support capital, the municipality subsidises
Big Data Development’ in 2015.66 The call aimed
important AI application solutions. 64
to foster the development and adoption of Big
Data, both for economic restructuring and to
advance governance. This was triggered by the
recognition of China's rich data resources, which
62
Ives and Holzmann 2018. 65
China Daily 2019.
63
The amount in euro was calculated based on the ECB’s official 66
China Academy of Information and Communications
euro foreign exchange reference rates for 2019. Technology 2019.
64
Wei 2019.
May 2021
13ATI international report on China
harbour potential benefits for competitive Table 3: Major projects for China’s AI and Big Data
advantage, economic growth and governance. development
However, Big Data developments remained Project Year
hesitant due to a weak industrial foundation, the Made in China 2025 (MIC 2015-ongoing
lack of openness and the absence of a long-term 2025)
strategy. In this outline, the State Council also Internet Plus 2015-ongoing
announced the development of a new model of Three-Year Guidance for 2016-2018
social governance and the formulation of Internet Plus AI
regulations to ensure social access to public data Development
via an open platform. Moreover, the government Big Data Industry 2016-2020
is pushing for the integration of Big Data into new Development Plan
generation information technologies (e.g. Cloud Three-Year Action Plan for 2018-2020
Computing).67 Promoting Development of a
New Generation AI Industry
Guidance on Developing Industrial Big Data New Generation of AI 2020-ongoing
In 2019, the MIIT released a ‘Guidance on Development Plan
Developing Industrial Big Data’ as a draft to solicit Source: authors.
opinions. This focuses on four areas of data:
resources, analysis, industry and governance, and Internet Plus
aims to establish high-quality manufacturing and Proposed in 2015, the grand action plan 'Internet
a data-driven manufacturing sector in China by Plus' aims at the comprehensive digitalisation of
strengthening the link between manufacturing and the economy and society beyond the conventional
the internet, AI, Big Data and the industrial internet, which is to be integrated into various
internet. It conveys two highly significant areas such as e-commerce, education and
messages: first, industrial Big Data is considered manufacturing. Big Data is one of the relevant
a factor of production and thus an economic technologies promoted by Internet Plus. As part of
resource, reinforcing developments to determine this bottom-up initiative, internet companies are
data ownership, market transaction mechanisms closely integrated in the development of
as well as valuations of data assets. Second, implementation guidelines. On the government
legislation on data governance is anticipated, side, the NDRC is responsible for the plan.70 71
underpinning improvements in legal issues around
security, ownership and sharing of data. The Both MIC 2025 and Internet Plus were launched in
timeline extends until 2025.68 2015 with the purpose of driving industrial and
digital innovation within China.72
2.3.1 Major projects
Three-Year Guidance for Internet Plus AI
In addition to the initiatives, small projects and Development
funds presented above, several large-scale
projects exist in China that contribute significantly In 2016, the Chinese government published the
to the development of AI and Big Data. Table 3 ‘Three-Year Guidance for the Development of the
lists these projects. Internet Plus AI’. According to this plan, China
aims to develop new AI industries, for example in
MIC 2025 core technology research. In addition, the
MIC 2025 is a strategic masterplan of the Chinese statement emphasises that projects relevant to AI
government with the main goal of upgrading innovations (e.g. smart vehicles or houses) will be
Chinese industry in a relatively short period of promoted, and the development and application of
time and developing it into a global high-tech smart wearable devices as well as robots will be
superpower. The plan therefore targets key high- pushed.73 Led by the MIIT, the plan focuses on
tech industries and technologies that make a four aspects 74:
significant contribution to economic growth but at - AI-hardware skills
present are largely dominated by foreign - Powerful platform-ecosystems
companies in China. AI and Big Data play a - AI-applications in major socio-economic
significant role among these technologies. AI is fields
defined as one of the core technologies being - Societal impact of AI
pushed by the government and there is also a
strong focus on Big Data, with many industrial
parks being established in China.69
67
State Council 2015b. 71
China Daily 2015.
68
Deutsche Gesellschaft für Internationale Zusammenarbeit 72
Shi-Kupfer and Ohlberg 2019.
(GIZ) GmbH 2020. 73
State Council 2016.
69
Zenglein and Holzmann 2019. 74
OECD 2020b.
70
Wübbeke et al. 2016, p. 20.
May 2021
14ATI international report on China
Big Data Industry Development Plan conditions.84 It is set to seize the great strategic
opportunities of AI developments, further expand
The Big Data Industry Development Plan was
China's AI advantage as a first mover, and
officially issued by the MIIT at the end of 2016,
accelerate the establishment of China as an
marking an important phase of China’s national
innovative and globally advanced country in
Big Data strategy.75 76 It was introduced as part of
science and technology.85
the 13th Five-Year Plan with the overall goal of
developing Big Data into a key strategic resource Four strategic goals are presented, aimed at
in China. China’s draft of the 13th Five-Year Plan making China a global AI leader by 203086:
describes this plan for the development of Big
- China evolves as a centre for basic AI
Data, which is intended to speed up the openness,
research and the development of AI
sharing, development and application of data
theories.
resources. Big Data will thus support the
- China leads applied research and
transformation and improvement of industries and
development of innovative AI products
innovate social governance.77 This comprehensive
and services.
Big Data strategy is considered a major step
- China creates a domestic AI industry and
towards the development of a Big Data industry in
leads global AI markets.
China.78
- China utilises AI to improve the efficiency
Three-Year Action Plan for Promoting the of traditional sectors and to move up the
Development of a New Generation AI global value chain.
Industry
2.4 Lessons for Europe
In 2017, the MIIT issued an action plan focused on
Compared to the European Union (EU), the
integrating AI into manufacturing. This plan
analysis of China's AI and Big Data landscape
supports the implementation of MIC 2025 and the
reveals a number of points of lessons the EU can
Next Generation AI Development Plan. Four
learn from.
initiatives are identified for 202079 80:
Number one is that Europe needs to
- Ensure developments and the integration
ascertain a broad availability of data to train
of key intelligent AI-products in the
and further develop AI applications. Due to
economy and society, e.g. intelligent
China’s large population and the near absence of
robots, smart unmanned vehicles or video
any privacy related regulation, China is in a unique
image recognition systems.
position to collect, process and analyse
- Ensure a sound hardware and software
unprecedented amounts of data. Compared to the
base for AI development, such as
EU it has thus more options to train AI models and
intelligent sensors, neural network
accelerate the development of its application to
semiconductors and open platforms.
numerous contexts, from everyday life to strategic
- Ensure, enhance and promote the
considerations. While it cannot be the ambition of
development of smart manufacturing and
Europe to remodel the regulatory environment of
the integration of AI in the industrial
China, the question remains how sufficient access
sector.
to suitable data sources and respositories could be
- Ensure the development of a public AI
ascertained.
support system for, e.g. training
resources, cybersecurity and network The EU should seek to actively promote and
infrastructure. enable the diffusion of AI and Big Data.
Today, China demonstrates a much wider
New Generation of AI Development Plan
commercialisation of AI and Big Data applications.
In 2017, the State Council issued the ‘New Due to numerous government initiatives, a large
Generation of AI Development Plan’ with a total AI and Big Data ecosystem has developed in
budget of ¥870 m (€111.48 m81). It is part of China, between private companies, government
sixteen ‘2030 Innovation Mega Projects’ listed by institutions and other relevant actors. As a result,
the State Council, which are intended to address the adoption, diffusion and commercialisation of
important bottlenecks in technology.82 83 The plan AI into all areas of daily life as well as the industrial
defines 16 research tasks including, e.g. new economy has progressed further in China. To
generation neural network models or game match these developments European companies
decision under incomplete information
75
China Academy of Information and Communications 80
United States Information Technology Office.
Technology 2019. 81
The amount in euro was calculated based on the ECB’s official
76
China Academy of Information and Communications euro foreign exchange reference rates for 2017.
Technology 2019. 82
Colvin et al. 2020.
77
Central Compilation & Translation Press 2016. 83
DEVELOPMENT Solutions Europe Ltd. 2018.
78
China Academy of Information and Communications 84
Colvin et al. 2020.
Technology 2019. 85
Ministry of Science and Technology 2017.
79
Triolo et al. 2018. 86
Carter and Crumpler 2019.
May 2021
15ATI international report on China
have to increase their readiness for the integration of commercialisation and implementation).
of these technologies. According to the study, China is considered an AI
champion alongside the United States while the EU
The EU should seek to improve citizens and
is lagging behind. Reasons for China's strong role
businesses openness for AI and Big Data.
include the extensive use and commercialisation
Another reason for the commercialisation in China
of AI, the availability of data and readiness of its
is the prevalent positive image of AI and Big
companies.87
Data. Compared to China, where digital
technologies are often associated with progress, While the EU will - in different areas - hardly want
technological advances and national strength, to imitate Chinese policies directly, the below
Europeans tend to be more sceptical. AI in overview shows that falling further behind is one
particular is often associated with job risk, lack of of the real threats of technological development.
privacy and fear in European countries. This Given the substantial head-start of both the United
mistrust hinders a greater diffusion and unbiased States and China in various areas, Europe may
attitude towards such promising technologies. face a double challenge. First, it must leverage its
remaining strengths in e.g. AI related to industrial
Transnational clusters could strengthen
applications and seek to connect and integrate
European development in AI and Big Data.
those with the existing dynamism in the United
China shows excellent initiatives in promoting
States and China.
startups, technologies and ideas related to AI and
Big Data. As a result, a number of clusters and Secondly, it must carefully consider which of the
regions have emerged that are specifically driving abovementioned success factors could be
these developments and have succeeded in replicated in a specific European way, e.g. how
developing as hotspots for AI and Big Data. Due large datasets can be collected and rendered
to the sheer size of China's market, such initially accessible without compromising existing data
local initiatives can scale easily and feed into what protection regulations - that will most likely not
has become a diverse national AI and Big Data fundamentally change in the foreseeable future.
landscape. The Chinese government provides
Figure 8 visualises China’s position in the AI-
targeted funding and other incentives to AI and
competitiveness map. In addition to the
Big Data companies, to enable them on their
categorised countries (champions, emerging
growth trajectory. To develop similar momentum,
leaders, labs and underperformers), the current AI
Europe will have to join forces in both the funding
competitiveness of the European Union is
of initiatives and subsequent market
visualised by the white circle with dotted lines. The
development.
volume of the dots refers to the level of domestic
A study by the Boston Consulting Group estimates R&D spending.
the AI competitiveness of countries based on their
capacity to develop AI (in terms of available talent
and funding), and capacity to deploy AI (in terms
Figure 8: AI-competitiveness map
Source: Candelon et al. 2020a, p. 3.
87
Candelon et al. 2020a.
May 2021
16ATI international report on China
Section 3
3 Advanced Manufacturing and Robotics
3.1 Major players
Table 4: Major government stakeholders in China’s Advanced Manufacturing and Robotics development
Scope Name and resulting organisations/initiatives, if applicable
Ministries Ministry of Industry and Information Technology (MIIT)
- National Manufacturing Strategy Advisory Committee (NMSAC)
National Development and Reform Commission (NDRC)
Other Institute of Advanced Manufacturing Technology (IAMT)
institutional Shenyang Institute of Automation, Chinese Academy of Sciences (SIACAS)
players
Authorities for Standardisation Administration of China (SAC)
regulation and China Electronics Standardisation Institute (CESI)
IPR China Robot Industry Alliance (CRIA)
Source: authors.
Ministries / central government bodies assessments and proposals on the future
prospects of the manufacturing industry as well as
The analysis of Advanced Manufacturing and
identifying key issues and measures related to the
Robotics reveals that similar political bodies play
strategy. The NMSAC also assists in setting up
an essential role in their development in China.
additional think-tanks (including private and
Among other related projects, the State Council
corporate think-tanks) to provide knowledge-
initiated MIC 2025 in 2015 and therefore placed a
based support for the process of China becoming
clear focus on the national promotion of
a manufacturing power.90
manufacturing.88 Regarding the ministries, the
MIIT and NDRC seem to be the dominant players As outlined above, the National Development and
for Advanced Manufacturing and Robotics in Reform Commission (NDRC) is an important
China. Although other ministries (such as the policy actor directly subordinated to the State
MOST) certainly play an important role as well, Council, which provides centralised guidance to
insufficient availability of information hindered the most ministries whose remit falls into or is closely
analysis of corresponding programmes or related to the economic domain. In this capacity,
initiatives. it supported the MIIT in developing the Robotics
Industry Development Plan and, earlier on, the
The Ministry of Industry and Information
Ministry of Science and Technology (MOST) in
Technology (MIIT) is perhaps the most influential
developing the Made in China 2025 inititiave. More
player in the field of Advanced Manufacturing and
generally, it plays a central role in developing the
Robotics in China. It has established various
economic section of the Five-Year Plan - in which
related committees and associations and strongly
Advanced Manufacturing plays an increasingly
influences current developments at both national
central role. Furthermore, it triggers more
and provincial level. It has launched a variety of
concrete actions, e.g. addressing advanced
projects on Advanced Manufacturing and Robotics,
manufacturing at regional level by releasing a
such as the ‘Smart Manufacturing Plan’ or the
blueprint for the reform and development of the
‘Robotics Industry Development Plan’. In addition,
‘Pearl River Delta’ in 2008.91 Today, the Pearl River
the MIIT is responsible for establishing many
Delta plays a significant role in China's Advanced
related innovation centres and guidelines in China.
Manufacturing landscape, which will be discussed
Even though the State Council is responsible for
later.
the coordination of MIC 2025, the MIIT is in direct
charge of this big national strategic plan.89 Other institutional players
The National Manufacturing Strategy Advisory In addition to the ministries presented, other
Committee (NMSAC) was founded in August 2015 institutions play an important role in the
under the administration of the MIIT. It acts as a development of Advanced Manufacturing and
think-tank and is responsible for studies,
88
State Council 2015a. 90
Ning 2018.
89
Frietsch 2020. 91
National Development and Reform Commission 2008b.
May 2021
17ATI international report on China
Robotics in China. In this context, the IAMT and strengthen robotics developments, for example of
the SIACAS stand out in particular. Chinese research teams with leading
manufacturing companies outside China.94
Based in Jiangsu Province, Institute of Advanced
Manufacturing Technology (IAMT) is a sub-unit of There are several technical committees for
the Hefei Institute of Physical Science, Chinese standardisation in Advanced Manufacturing and
Academy of Sciences (CASHIPS), conducting Robotics. The China National Technical Committee
research on Robotics and smart devices. for Automation Systems and Integration
Established in January 2007, the IAMT has since Standardisation (SAC/TC 159) includes a ‘Robotics
undergone several mergers and affiliations with Devices Technical Subcommittee’, which is mainly
other institutes. It is one of the first members of responsible for the development of standards for
the Jiangsu Industrial Technology Research industrial robots, system interfaces as well as
Institute (JITRI). IAMT's research focus includes parts and controls. In addition, the National
Robotics, intelligent vehicles and intelligent Information Security Standardisation Technical
equipment, for which three research centres Committee (SAC/TC 260) is responsible for the
(Intelligent Robotics Centre, Intelligent Vehicle development of security-related standardisation,
Centre and Intelligent Equipment Centre) have for example in the areas of smart manufacturing
been established to provide technical support for and biometric facial recognition. The National
innovations in the intelligent equipment industry. Technical Committee 268 on Intelligent Transport
The institute is now emerging as a training hub for Systems (SAC/TC 268) develops standards
experts in the field of Advanced Manufacturing in specifically for intelligent transportation. These
China.92 three subcommittees were also listed in CESI's AI
Standardisation White Paper.95 In its ‘Main Points
The Shenyang Institute of Automation, Chinese
of National Standardisation Work in 2020’, the
Academy of Sciences (SIACAS) was established
SAC also draws attention to the need to carry out
in 1958 and is regarded as the national leading
‘pilot work on standard research, supply and
institute in the development of automation science
standardisation in the field of integration of
and technology in China. Considered the ‘cradle of
Advanced Manufacturing and modern service
China's Robotics technology’, the institute is a key
industries’ with the overall goal of improving the
institution for industrial and high-tech
standardisation system and the capacity of highly
development in China. It focuses on the three
skilled development in China.96
fields of Robotics, intelligent manufacturing and
opto-electronic information technology. The Another prominent player in China’s industrial
research centre supports more than 10 national policy landscape is the China Robot Industry
and provincial central laboratories and technical Alliance (CRIA), a non-profit organisation
centres, as well as an educational facility for consisting of companies, manufacturers,
master's degree programmes, doctoral universities, institutions as well as other
programm*es and postdoctoral programs. SIACAS organisations in China that work together
operates various exchange and cooperation voluntarily. Established in 2013, the CRIA pursues
programmes with research institutions and high- various tasks, such as the implementation of
tech companies, at the international level as national industrial policies and measures or
well.93 strengthening the dialogue between members on
technologies, the market and intellectual property
Authorities for regulation and IPR
rights regarding Robotics standards. The CRIA
Looking at the stakeholders responsible for represents China in the International Federation of
regulation and IPR for Advanced Manufacturing Robotics (IFR) as a national association member.97
and Robotics, the China Robot Industry Alliance
Major business actors
(CRIA) contributes to current developments
alongside the SAC and CESI in China. In addition to the stakeholders presented, a
number of companies play a significant role in
New efforts via patents are designed to help
China's developments in both Advanced
enhance China's role as a globally successful
Manufacturing and Robotics.
Robotics manufacturer. In 2016, the Industrial
Robot Patent Alliance established a patent pool for Table 5 summarises the largest business players
industrial robot technologies to improve the as well as four promising start-ups in Advanced
availability of critical, high-quality patents in Manufacturing and Robotics in China.
China. In addition, China is pursuing a strategy to
increase collaborations and acquisitions to
92
Institute of Advanced Manufacturing Technology 2020. 95
China Electronics Standardization Institute 2020a.
93
Shenyang Institute of Automation, Chinese Academy of 96
Seconded European Standardization Expert for China 2020.
Sciences 2020. 97
China Robot Industry Alliance 2020.
94
Nan 2016.
May 2021
18You can also read
