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In May 2019, the U.S.-China technology rivalry became evident when a dispute over 5G and Huawei erupted after Washington placed Huawei on the “entity list.”
At the center of the debate are standards to support fifth generation (5G) mobile network technology. China is ahead of the US in setting international standards in information and communication technology by issuing 5G standards.
Chinese companies hold one-third of the world’s 5G-related “normative-essential” patents – patents that claim to be innovative and must be used to comply with industry standards.
Holding 5G patents is important because 5G extends beyond conventional mobile communications in emerging technology sectors. Autonomous cars, artificial intelligence (AI), smart factories and smart cities are all connected by 5G networks.
As 5G standards are adopted, essential-property holders will gain additional profits and exert growing power over the standardization and innovation of related technologies.
This is why the US takes China’s influence on global rankings seriously. In the previous Trump administration’s 2020 report, “The United States’ Strategic Approach to the People’s Republic of China,” the word “standard” was mentioned 10 times.
The repetition of the technical term in a high-level White House strategic document shows Washington’s skepticism about China’s standardization.
By promoting a “common set of standards for secure, robust and reliable communications platforms,” the United States plans to work with allies and partners to push back against “discriminatory” Chinese-made industry standards.
In the year This caution is being reinforced by US President Joe Biden, who published a newspaper in 2020 warning that the rules of the global economy should not be rigged against the US.
The paper argues that the US should continue its “70-year” role in writing trade and technology laws. He also called for cooperation between like-minded countries[ing] Chinese abuse.
Standards are one of the pillars of international rule-making. The Biden administration’s 100-day review of supply chains for commodities of strategic importance “identifies key areas where government can play a more active role in setting standards and encouraging high-street business practices.”
China also sees it as a strategic vehicle for achieving a new world order. The Belt and Road Initiative emphasizes levels of cooperation, and Beijing has signed 52 levels of cooperation agreements as of September 2019.
China’s growing influence on standardization and the US response show that such standards are not just a tool for technical, industrial or economic competition – they are also a geopolitical consideration.
This clash will intensify as China formulates its vision for “China Standard 2035” – the continuation of Beijing’s strategic industrial policy of “Made in China 2025”.
But while Made in China 2025 pursues dominance in commodity production, China Standard 2035 aims to regulate laws governing emerging technologies.
Chinese companies and organizations want to increase their “speak” by issuing international technical standards for new technologies of the fourth industrial revolution and digital transformation technologies such as 5G, AI and quantum computing.
State-centered rating approaches are now being questioned by US lawmakers. Washington is known for being hands-off and industry-led, but reports from key think tanks have emphasized the role of government both domestically and internationally.
The report, “US Leadership in AI: Increasing Federal Involvement in Technical Standards and Related Tools,” published by the US National Institute of Standards and Technology, recommends that Washington play its part in reversing China’s dominance of standards-based technology.
The US government has officially announced its support for the US candidate running for the position of Secretary General of the International Telecommunication Union, which has been held by China for the past eight years.
Biden has come forward to show his support for this. This shows that the US has changed its attitude towards international standardization and now realizes its importance.
The disruption of global supply chains is often attributed to the US-China technological rivalry. A recent report by the EU Chamber of Commerce in China says there is “growing concern” about the removal of technical standards and data governance.
The politicization of standard setting – “an essential tool for facilitating trade and interaction” – risks disintegrating international standards and disrupting trade and innovation.
If the US-China conflict between technology and technical standards leads to the breakdown of international standards, companies may have to manage two separate global supply chains – each governed by its own independent system of standards.
In order to maintain a healthy global economy, the US, China and the international community must work to avoid this situation.
Heijin Lee is a professor at Yonsei University’s Graduate School of International Studies and director of the Center for Australian Studies and the Center for Converging Industry and Standardization. A version of this article has been published for the first time over here as if Global Asia.
This article was first published in East Asia Forum and is from the Crawford School of Public Policy at the College of Asia and the Pacific at the Australian National University. Reprinted under Creative Commons license.
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