China's Playbook for Digital Dominance Analyzed

This push is part of a broader national strategy known as "China Standards 2035," a successor to the "Made in China 2025" industrial plan. The initiative aims to transform China from a standard-taker to a standard-setter, particularly in next-generation technologies like the Internet of Things (IoT), quantum computing, and biotechnology. China's presence in international standards development organizations (SDOs) like the International Organization for Standardization (ISO), the International Electrotechnical Commission (IEC), and the International Telecommunication Union (ITU) has grown significantly. This includes not only increased participation in technical committees but also securing leadership positions to help shape the direction of global standards. For instance, by 2021, China held over 30% of the leadership roles in the ITU's technical committees, while the U.S. held less than 8%. Key to this strategy is the active involvement of Chinese technology companies. Giants like Huawei and ZTE are not just participating in but are leading working groups within bodies such as the 3rd Generation Partnership Project (3GPP), which sets global telecommunications standards. This corporate engagement is incentivized by government subsidies for entities that contribute to the creation of international standards. A significant aspect of this strategy involves the accumulation of Standard-Essential Patents (SEPs), which are patents necessary to implement a specific industry standard. By building large SEP portfolios in areas like 5G and future 6G technologies, Chinese companies can influence the technological trajectory and generate significant revenue through licensing fees. This strategy is unfolding within a competitive geopolitical landscape, with the United States and the European Union also releasing their own strategies to counter China's influence. The U.S. has expressed concerns that China is politicizing what has traditionally been a private-sector-led process, promoting its standards irrespective of technical merit to gain market dominance. For 6G, China has already begun its technological experiments and aims for standard-setting to be achieved around 2025, with commercialization expected by 2030. The government has allocated spectrum in the 6 GHz band for 5G and 6G services and has already established three key 6G technological standards within the ITU's framework. The "Digital Silk Road," a component of the broader Belt and Road Initiative, serves as a vehicle for exporting Chinese-developed digital infrastructure and standards to partner countries. This initiative helps to create markets for Chinese technology and promotes the international adoption of its technical norms. To further these goals, China has signed numerous bilateral and multilateral standardization cooperation agreements. By the end of 2023, it had 108 such agreements with 65 national and regional standardization bodies and international organizations, including 57 agreements with 47 countries participating in the Belt and Road Initiative.