All Things Policy The Paradoxes in China as a Tech Power
Sep 5, 2025
Shobhankita Reddy, a research analyst at the Takshashila Institution, dives deep into China’s ascent as a tech superpower. The discussion reveals the tension between rapid growth and strict government control over private sectors like Alibaba. Reddy highlights the paradox of China’s tech innovation amidst geopolitical tensions, particularly with the U.S. She also addresses how Xi Jinping's leadership has shifted the balance towards a more centralized, techno-nationalistic state, replete with vulnerabilities that could impact its future.
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China's Rapid Tech Transformation
- China transformed from a low-cost manufacturer into a leader in cutting-edge R&D across multiple tech fields within 30 years.
- The chapter argues this rise is remarkable but shows early signals of structural weaknesses that may limit future growth.
Controlled Openness Fueled Growth
- China combined domestic internet controls with generous flows of talent, capital and ideas from abroad to grow its tech ecosystem.
- Foreign technology acquisition and practical learning from rivals were central to China's success.
Foundations: Education And Infrastructure
- China invested heavily in human capital and infrastructure, dedicating substantial GDP shares to education and connectivity.
- Those foundational investments enabled China to become the world's factory and later shift toward innovation.
