China will focus on ‘groundbreaking’ technology, from chips to quantum computers

GUANGZHOU, China – China wants to boost research into what it calls “frontier technology”, including quantum computers and semiconductors, as it competes with the US for supremacy in the latest innovations.

In its five-year development plan, the 14th of its kind, Beijing said it would “make science and technology self-reliance and self-improvement a strategic pillar for national development,” according to a CNBC translation.

Prime Minister Li Keqiang said on Friday that between 2021 and 2025, China would increase research and development spending by more than 7% per year, in pursuit of “major breakthroughs” in technology.

China’s technology champions such as Huawei and SMIC have been targeted by US sanctions as tensions between Beijing and Washington have increased in recent years.

As such, China has focused on increasing its domestic expertise in areas it sees as strategically important, such as semiconductors. And now it has drawn up seven “groundbreaking technologies” to which it will prioritize not only over the next five years but beyond.

1) Artificial Intelligence (AI)

China plans to focus on specialized chip development for AI applications and developing so-called open source algorithms. Open source technology is usually developed by one entity and licensed by other companies.

Emphasis will also be placed on machine learning in areas such as decision making. Machine learning is the development of AI programs trained on the basis of massive amounts of data. The program “learns” as it gets more data.

AI has been a key area for Chinese companies and central government in recent years. Major companies such as Alibaba and Baidu have invested in the technology.

China and the US vie for AI dominance. A group of experts chaired by Eric Schmidt, the former CEO of Google, said China could soon replace the US as the world’s ‘AI superpower’.

2) Quantum information

3) Integrated circuits or semiconductors

Semiconductors are a critical area for China and one in which it has invested heavily in recent years, but the country is struggling to catch up with the US, Taiwan and South Korea.

The problem is the complexity of the semiconductor supply chain. Taiwanese TSMC and South Korean Samsung are the two most advanced chip manufacturers, but they rely on tools from the US and Europe.

Washington has blacklisted SMIC, China’s largest chip maker, the Entity List. SMIC cannot get its hands on American technology. And the US has reportedly been pushing for Dutch ASML to stop shipping an important tool that could help SMIC catch up with its rivals.

Since China does not have the companies that can design and make the tools that the chip manufacturers need, it relies on companies from other countries. This is something that China wants to change.

In its five-year plan, China says it will focus on research and development in integrated circuit design tools, key equipment and key materials.

Chips are incredibly important because they are used in many of the devices we use, such as smartphones, but they are also important to other industries.

4) Brain Science

China plans to conduct research into, among other things, stopping brain diseases.

But it also says it plans to look at “brain-inspired computers” and “brain-computer fusion technology,” according to a CNBC translation. The five-year plan did not go into what that might look like.

China has outlined seven “groundbreaking” technologies in its 14th Five Year Plan. These are areas in which China will conduct research, including semiconductors and brain computer fusion.

Yuichiro Chino | Moment | Getty images

In the US, however, work is already being done at Elon Musk’s Neuralink company. Musk is working on implantable brain chip interfaces to connect humans and computers.

5) Genomics and Biotechnology

With the coronavirus outbreak last year, biotechnology has become increasingly important.

China says it will focus on “innovative vaccines” and “biosafety research.”

6) Clinical Medicine and Health

China’s research will focus on understanding the progression of cancer, cardiovascular, respiratory and metabolic diseases.

The government also says it will investigate some “advanced” treatment technologies, such as regenerative medicine. These are drugs that can grow or repair damaged cells, tissues and organs.

China says it will also look at key technologies in the prevention and treatment of major communicable diseases.

7) Deep space, deep earth, deep sea and polar exploration

Space exploration has been a top priority for China lately. Beijing said it will focus on research into the “origin and evolution of the universe,” Mars exploration, and deep-sea and polar research.

In December, a Chinese spacecraft returned to Earth with rocks from the moon. It was the first time that China launched a spacecraft from an alien body and the first time that it collected lunar samples.

And in July, China launched a mission to Mars called Tianwen -1.

– CNBC’s Iris Wang contributed to this report.

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