Spurred towards greater self-reliance by the stringent tariffs agenda of the Trump administration in the US, China will lead the world into the Fourth Industrial Revolution and create a Beijing-centred global economic security zone dependent on its technology, a new report forecasts.
In the 2025 edition of its China Tech report, GlobalData concludes: “China will succeed at both, with major implications for the world order.”
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Of the foundations for this, the report states: “Oil was the control point of the last century, and data will replace it in the 21st, fuelling the algorithmic engines of the future. China will have more of this fuel than any other country.”
As the two dominant powers in the world, there is a race between the US and China to develop and control the technologies that will be central to the next era of industrial development. The Fourth Industrial Revolution refers to the driving of automation and transformative change across industries through the implementation of advanced technologies. These include AI, which is seen as the most significant, but also the likes of robotics, the internet of things and biotechnology.
Of the rivalry between the two countries, the report states: “The US has had a delayed response to China’s industrial growth since the turn of the century. However, it is now aggressively trying to regain its position as the dominant player in the technology sphere while also attempting to limit China’s access to key technologies and intellectual property. The escalating antagonism between the nations has caused concern among economists, manufacturers and consumers. While it is widely agreed that competition is essential for technological advancement, it is feared that both the US and China are moving faster than their domestic industries can adapt, raising concerns over impending labour and skills shortages.”
The re-election of US President Donald Trump has accelerated the decoupling of the two countries, with his tariffs agenda targeting China most aggressively. The tariffs will be damaging for both Chinese and US companies, and China is responding with retaliatory tariffs and export restrictions. It is also prioritising self-sufficiency and seeking to expand its influence across developing markets around the globe.
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By GlobalData“As the world divides between Chinese and US spheres of influence – increasingly separate economic and security zones – Beijing sees the need to set the next generation of technology standards, whether in telecoms, space satellite networks, AI or genomics,” the report explains. “The 15-year China Standards 2035 project aims to create agreed specifications on how these technologies work and interoperate worldwide. These specs will seek to shape the future of these technologies and, thus, where political and economic power resides.”
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