In the fight for global technological standards, understand how China is challenging Western dominance and redesigning the rules of the game
Smartphones are a clear example of the power of standardization. Composed of components from hundreds of suppliers, they can connect to virtually any network in the world and a wide range of ancillary devices thanks to a common set of technical specifications established by numerous companies. But how these standards are defined is still a mystery to most people.
Global bodies, such as International Organization for Standardization (ISO) ea International Telecommunications Union (ITU)periodically bring together companies and experts to discuss and establish these agreements. For decades, this process was dominated by countries like the United States, Germany and Japanwhose companies profited significantly from the system. THE IBMfor example, an American giant with more than 100,000 patentsinvoiced US$366 million last year with intellectual property licensing. Already the Qualcommanother American company, generates about a quarter of its gross profit through wireless technology licensing.
China’s rise in control of technological standards
In recent years, China has become increasingly assertive in setting these standards. Last month, the THAT approved three new technical standards, which will be incorporated into the sixth generation (6G) mobile technology. These new standards, which address how networks integrate artificial intelligence (AI) and create immersive experiences in virtual realitywere developed by Chinese Academy of Sciences (CAS) and by China Telecomboth controlled by the Chinese government.
Even with the US government’s efforts to limit the influence of Chinese equipment on other countries’ mobile networks, Chinese wireless technology continues to expand globally. THE Huaweifor example, has made more money since 2021 licensing its technology to foreign companies than it paid for using other people’s technologies.
China expands its influence beyond mobile networks
China’s influence in setting standards extends to other technological areas. Companies like Xiaomia smartphone manufacturer, and BOE Technologythe world’s largest producer of LED screens, have benefited from royalties related to these standards. THE Hikvisiona Chinese surveillance technology company, is also increasingly involved in setting standards despite being blacklisted in the US. Additionally, China plays a leading role in the first global standards for quantum technology.
Unlike the West, where the standardization process is led by private companies and industrial associations, China adopts a centralized and governmental. In 2018, the Chinese government launched a plan to position the country at the forefront of technical standards in areas ranging from telecommunications until IAwith targets set for 2035. Chinese standards are developed by institutes under government ministries, and efforts are coordinated by China Standards Administration (SAC)which organizes the country’s global interactions.
China seeks global support for its standards
The Chinese government not only focuses its efforts domestically, but also tries to influence global standards. China has worked to transfer standards-setting authority from business associations to the THATthe UN body where it has the greatest influence. Furthermore, it has already signed more than 100 bilateral standards agreementsmainly with countries in the global south. At a recent conference with African leaders, China added new agreements with Benin e Niger.
These agreements guarantee China greater support for its preferred specifications in international bodies such as the THATas noted Alex Hedo Centre for International Governance Innovationa Canadian think-tank. Even if China is unable to approve its standards globally, it can still benefit from implementing them in countries with which it has bilateral agreements, excluding Western companies that refuse to adopt these standards.
For China, technological standards go beyond corporate profits — they also reflect social values and government interests. The Western internet, for example, tends to promote individual privacywhich goes against the centralized control desired by the Chinese government. In recent years, China has proposed revisions to the standards that support the internet. In 2019 and 2022, the Huawei suggested new protocols to the ITU, which would allow greater government control over the network. Although not approved, these proposals were supported by countries such as Iran, Russia e Saudi Arabia.
In response, the Trade and Technology Council — a platform for cooperation between the US and Europe — issued a statement warning that democracies must lead on emerging technologies and the standards that underpin them.
Western reaction: resistance and adaptation
The rise of Chinese influence in the global standardization process has worried policymakers in America and Europe. Now, like China, they are becoming more actively involved in setting standards, according to Tim Rühligdo European Union Institute for Security Studies.
O CHIPS and Science Act of the USA, sanctioned in 2022, gave the National Institute of Standards and Technology the responsibility of developing standards for AI and cybersecurityexpanding its role in coordination with international bodies.
In Europe, some policies suggest a more active role for European Telecommunications Standards Institute (ETSI) to counter China’s growing influence.
With this, the West is beginning to abandon its traditional bottom-up, market-based approach. “We are being forced to undermine a system that has benefited us for a long time,” laments Rühlig. In more ways than one, China is making the West play along with its new rules.
With information from The Economist magazine
Source: https://www.ocafezinho.com/2024/10/16/como-a-china-esta-escrevendo-as-leis-tecnologicas-do-mundo/
