China Standards 2035

1.         Introduction.  China Standards 2035 (CS2035) is an ambitious plan, to write global standards for the next generation of technology.  It lays the blueprint for China’s government and leading technology companies to set global standards for emerging technologies like 5G internet, Internet of Things (IoT), and AI, among other fields.  The aim of this paper is to study China Standards 2035 with specific regard to China’s interest in setting standards in the technology field.

2.         Standards.      Standards are technical specifications used to ensure uniformity, enhance efficiency of network and ensure that equipment / technology work seamlessly across all countries (Kharpal, 2020).  They are proprietary in nature, thereby allowing a company to control technologies and products, which combined with a country’s presence in multinational bodies, allow it to control the same especially in the strategic field (Picarsic, 2020).  Additionally, there is also the issue of licensing fee - China is currently the world’s second largest payer of licensing fees in the world, but CS2035 will allow it to reverse this relationship, making it a net recipient of licensing fees (Koty, 2020).

China Standards 2035

 3.         CS2035 is a push to improve standards domestically across various industries, from agriculture to manufacturing, since in practice, there is a wide variation in how policies are interpreted and implemented at the local level.  However, one section which highlights the need to establish a “new generation of information technology and biotechnology standard system”, focuses on developing standards for IoT, cloud computing, big data, 5G and AI .  These are all seen as crucial future technologies that could underpin critical infrastructure in the world.  Throughout, the emphasis is on “internationalisation” of Chinese standards (Bruyere, 2020).

4.         The document outlines the need to “participate in the formulation of international standards” and the need for China to put forward more proposals for international standards {refer Section IV, Para 1(a) of Annexure 1 of CS 2035} (Kharpal, 2020).  This also explains the move by China to introduce “New Internet Proposal” at the International Telecommunication Union (ITU).  The paper also lays out the intent to “give full play to the organisational and coordinating roles of the Chinese National Committees of the International Standards Organization and International Electrotechnical Commission”, while calling upon China to bolster internationalisation through bilateral and regional standards-based partnerships (Bruyere, 2020).

5.         Link to Made in China 2025 (MiC2025).    While MiC2025 attempted to make China self-sufficient in designing and producing high-tech products, CS2035 tries to ensure that proprietary rights of these product  stays with China and the standards that China sets are forced down on other countries (Koty, 2020).   Thus, it is apparent that Made in China 2025 and China Standards 2035 are two parts of the same wider strategy.

Analysis

 6.         Before realising the aim of becoming a global standard setter, China needs to ensure that they are set domestically and that these companies can contribute to global standards.  Thus, it will need to coordinate standards across the country before aiming for same at the global level.

7.         If China were to lead standard setting, they may be used to privilege domestic companies, such as Huawei, which will likely spark another round of containment attacks from the US.  This will result in global standards, in sensitive tech areas that relate to personal data and national security, becoming politicised and gradually bifurcating wherein, countries will have to choose to either comply with Chinese or alternate standards.  CS2035 will also accelerate China’s proliferation of virtual systems like social credit system, State-controlled National Transportation Logistics Platform (LOGINK), medical / consumer good standards etc and associated industries.

8.         BRI, which included technology in 2019, will aid in China spreading its standards and influence.  China has entered into diplomatic agreements and MoUs incorporating its own technical standards extensively within the BRI realm as a major policy component of its action plan (Kharpal, 2020).  BRI may enhance pace of adoption of Chinese standards promoted under CS2035 in developing economies (like African / East EU nations) given that western alternatives are expensive.

9.       Chinese companies have already started influencing international standard-setting bodies like ITU (“New Internet Proposal” by Huawei) and International Standards Organisation. State-sponsored efforts to shape international standards have been ongoing since the country entered the WTO, wherein post that, Standards Administration of China had explicitly mentioned technical standards as a protective tool that could compensate for lower trade barriers (Arcesati, 2019).  In the near future, the world will see China trying to aggressively gain support of countries for its standards setting campaign.

10.       As more technical and technology standards are defined by China, the associated data will become subject to the Chinese government’s data localisation and access policy.  Hence, issue of data security will need to be addressed.

11.       Conclusion.  China’s standards plan stems from a clear, deliberate strategic progression.  China has spent the past two decades establishing influential footholds in multilateral bodies, targeted niche technology companies and is now using these footholds to set their rules to define the infrastructure of the future world.  India needs to recognise the role of standards and the potential for China to weaponise the same and compete for alternative, safe, norm-based ones.

Bibliography

Arcesati, R. (2019, January 29). Chinese tech standards put the screws on European companies. Retrieved September 2020, from MERICS: https://merics.org/en/analysis/chinese-tech-standards-put-screws-european-companies

Bruyere, E. d. (2020, April 11). Tech Crunch. Retrieved September 2020, from Tech Crunch: https://techcrunch.com/2020/04/11/chinas-next-plan-to-dominate-international-tech-standards/

Kharpal, A. (2020). Power is 'up for grabs’: Behind China’s plan to shape the future of next generation tech. CNBC .

Koty, A. C. (2020, JUly 02). What is China Standards 2035 Plan and How Will it Impact Emerging Technologies? Retrieved September 2020, from China Briefing: https://www.china-briefing.com/news/what-is-china-standards-2035-pla-how-will-it-impact-emerging-technologies-what-is-link-made-in-china-2025-goals/

Picarsic, E. d. (2020, April). Beijing’s Platform Geopolitics and “Standardization Work in 2020". China Standard Series .