By Andy Mok

Innovation is nothing more than unleashing human imagination and focusing it on solving important practical problems. So countries with the most smart people and abundant resources to turn ideas into reality will be the ones who will enjoy the most success in the long-run. A country's political system can accelerate or slow down this process in the short-term but that system is also a reflection of the desires and will of a country's people.

In the end, a country's capability of innovation is not really confined by its social or political system but only limited by the number of smart and diligent people it has and the quantity of resources available to support innovation. China has been a uniquely successful example of this in modern history.

This screen image captured at Beijing Aerospace Control Center on November 17, 2022 shows China's Shenzhou-14 taikonaut Chen Dong having exited the space station lab module Wentian. The Shenzhou-14 crew on board the orbiting Chinese Tiangong space station is conducting their extravehicular activities for the third time, according to the China Manned Space Agency. (Photo/Xinhua)

In recent years, China has made significant strides in the field of technology. One of its most notable achievements has been the development of 5G networks. 5G is the next generation of wireless technology, and it promises to revolutionize the way we live and work. With 5G, we will have faster internet speeds, lower latency, and more reliable connections and this is enabling new applications like autonomous vehicles and smart cities.

In addition to 5G, China has also been a leader in artificial intelligence (AI). AI is already being used in a variety of applications such as facial recognition, automatic translation and even globally successful consumer facing applications like TikTok.

As AI continues to develop, it will become even more integral to and pervasive in our lives. Thanks to China's technological achievements, we are on the cusp of a new era of possibilities, but because of geopolitical challenges, future achievements are at risk and this not only poses a threat to the people of China but of the entire world since technological innovations have became ever more crucial for addressing increasingly acute global challenges.

Addressing this threat to China's technological development was a key topic in the work report delivered by General Secretary Xi Jinping to the 20th CPC National Congress. In this report, he emphasized that one of China’s overall development objectives for the year 2035 is to “join the ranks of the world’s most innovative countries, with great self-reliance and strength in science and technology.”

In the modern world with its increasing reliance on technologies like 5G and AI that power everything from businesses and personal lives to the military, technological innovation is not only vital for prosperity but has become one of the most important components and precursors of national security. In the near term, one of the biggest challenges China must overcome to secure its future and its ability to contribute to a better world is developing a secure and robust semiconductor supply chain that can produce the most advanced chips free from interference by other countries.

Because of the complexity of semiconductor supply chain and the numerous distinct but interrelated technological hurdles that must be overcome, the difficulty of success should not be underestimated. And the cost of doing so will be expensive with some estimating it to be well in excess of $1 trillion. But China has a vast reservoir of scientific talent and abundant financial resources to support this endeavor. Moreover, its political system has the ability to effectively prioritize the development of a secure semiconductor supply chain.

As one of the most economically dynamic regions in the world and a major hub for technology and innovation, the Guangdong-Hong Kong-Macao Greater Bay Area of China will play an important role in China's quest to join the ranks of the world's most innovative countries. In particular, the ability to design and manufacture advanced semiconductors and the equipment to manufacture them is of the utmost urgency and has enormous long-term strategic significance. So it appears inevitable that the Greater Bay Area will be called up on to play an important role in this as well.

The Greater Bay Area is home to pioneering technology innovators such as Huawei, Tencent, and DJI. These companies are all dependent on semiconductors. But they are also important sources of market insight, technical expertise and other resources to help create a robust semiconductor ecosystem in the Greater Bay Area. As they are joined by new startups and contributions from the thousands of research institutes there, the Greater Bay Area will become an increasingly important nexus for semiconductor R&D, design and manufacture.

Next year will mark the 10th anniversary of China launching the Belt and Road Initiative (BRI), which was launched with the aim of promoting economic cooperation between China and the countries along the routes, as well as enhancing cultural exchange and understanding.

In the past 10 years, the initiative has seen significant progress, with a large number of infrastructure projects completed or underway. These projects have not only boosted economic development in the participating countries, but have also helped to improve connectivity between them.

With this foundation laid, the opportunities for further cooperation are promising. In particular, the next phase of the BRI will include a focus on every phase of the technological innovation process from research and development to sales and marketing. With its outward facing experience and economic dynamism, the Greater Bay Area will continue to play a key role.

Since China began its reform and opening-up process in 1978, Guangdong has been at the forefront of this effort. As a result, the province has enjoyed rapid economic growth and has become an important engine of China’s economy.

In the years to come, Guangdong will continue to deepen its reform and opening-up in several key areas. First, the province will continue to attract foreign investment and promote trade and investment liberalization especially in areas related to technological innovation. Second, Guangdong will further develop its financial sector and create a more business-friendly environment. Finally, in response to evolving national priorities to accelerate technological innovation, the province will intensify its efforts to protect intellectual property rights and encourage innovation.

In summary, innovation is vital for a country's success and even its national security. By virtue of the size of its talent pool and resources available to support innovation, China enjoys distinctive advantages. However, the short-term challenges are daunting and should not be underestimated. But the longer-term future remains bright and the Greater Bay Area and Guangdong province will be an important part of the creation of this brighter future.

Andy Mok is a senior research fellow of Center for China and Globalization (CCG).  The article reflects the author's opinions, and not necessarily the views of GDToday.

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