In 2022, China allocated a staggering $229 billion to its defense budget, making it the second largest in the world after the United States. Major industrial reports highlight that the advanced 5G network, which covers more than 85% of the country’s urban areas, is a critical element in China’s strategic intelligence infrastructure. Huawei, one of China's largest tech companies, significantly contributes to this endeavor by holding over 3,000 5G-essential patents globally.
For example, the Belt and Road Initiative (BRI), launched in 2013, showcases China’s strategic efforts to expand its geopolitical influence through infrastructure projects across more than 60 countries. By investing billions in roads, ports, and railways, China aims to enhance trade routes while simultaneously gaining strategic footholds globally. The project costs have already exceeded $4 trillion, with an expected economic return surpassing 8% annually for partner nations.
Xi Jinping articulated the importance of this initiative when he said, "The Belt and Road is not China’s solo, but a symphony performed by all relevant countries." This statement illustrates the Chinese government's viewpoint on cooperative global growth, albeit under its strategic influence.
Meanwhile, China's investment in artificial intelligence (AI) remains unparalleled, funneling approximately $22 billion per year into the AI sector. In 2020, Baidu, a leading Chinese tech company, ranked first globally in terms of AI patent applications, securing more than 2,700 patents. The efficiency of facial recognition systems in major cities like Beijing and Shanghai has improved by over 94%, facilitating law enforcement and public security operations.
To put this into perspective, a 2021 report by the International Data Corporation (IDC) pointed out that China’s share in global AI spend is poised to grow from 14.8% to 23.7% by 2024. These investments directly correlate with advancements in domestic services and surveillance capabilities, reinforcing state control while boosting technological prowess.
China’s cyberspace capabilities are also noteworthy. According to the Global Cyber Security Index 2021, China ranks among the top 5 nations, showcasing its robust defensive and offensive cyber capabilities. The infamous 2017 WannaCry ransomware attack, which affected over 100,000 organizations worldwide, highlighted China's adeptness in cybersecurity, as Chinese security firms quickly deployed patches and mitigations within hours.
To ensure economic leverage, the Chinese government actively pursues rare earth minerals. In 2021, China accounted for over 55% of global rare earth production, translating to 140,000 metric tons. These materials are crucial in manufacturing high-tech products, including smartphones, electric vehicles, and military hardware. The scarcity and strategic importance of these minerals make China a pivotal player in global supply chains.
During a keynote speech at the 19th Party Congress, Xi Jinping remarked, "We will deepen reform in all areas and adopt new strategies for innovation-driven economic growth." This statement underscores China’s resolve in maintaining its technological and economic leadership.
Consider the monumental influence of China's fintech sector. As of the end of 2021, over 87% of China's population used mobile payment platforms like Alipay and WeChat Pay. The exponential growth in the digital payment sector had a transaction volume of over $17 trillion in one year, outpacing traditional banking methods and reducing transaction costs significantly.
Addressing military capabilities, China’s naval expansion is particularly significant. In 2021, the People's Liberation Army Navy (PLAN) launched three new warships within a single day, including a Type 075 amphibious assault ship. Such rapid deployment exemplifies the PLAN's goal to project power across the Indo-Pacific region. Analysts suggest that China's fleet size could reach 425 ships by 2030, outgrowing the U.S. Navy's projected 355 vessels.
Moreover, the importance of space exploration remains high on China's strategic agenda. The successful landing of the Tianwen-1 rover on Mars in May 2021 signifies the country's advancing space capabilities. With a budget of more than $8 billion annually for its space program, China aims to build its own space station by 2022 and aims for a crewed moon mission by the 2030s.
Economically, strategically, and technologically, China’s measures and investments underscore its ambition to be the preeminent global power. The global community closely watches as China continues to enhance its strategic intelligence ecosystem, consolidating its power, and expanding influence through multifaceted approaches.
For more detailed insights, consider visiting China Strategic Intelligence Analysis.