Li Qiang defends China's tech advancements, rejects state subsidies claims at World Economic Forum

Premier says China's tech advancements an 'opportunity' for world, not threat

China's Premier Li Qiang has countered global concerns about the nation's technological surge, framing it as a worldwide opportunity, not a threat. He dismissed claims that hefty state subsidies are the primary driver of China's high-tech boom, attributing its success to a vast domestic market and significant corporate investment. Li highlighted advancements in areas like EVs and AI, suggesting they offer empowerment rather than disruption to global economies. China's Premier Li Qiang on Wednesday defended the country's technological advancements as an opportunity for the world rather than a threat. Li also said the country's heavy state subsidies were not the main reason for the rapid rise of its high-tech industries, at a time when Western officials have complained that China's state support for industries from artificial intelligence to electric vehicles has provided an unfair competitive edge. China's No 2 leader made the remarks in his speech at the opening plenary of the World Economic Forum's Annual Meeting of the New Champions, known as the "Summer Davos," held this week in the northeastern Chinese coastal city of Dalian. He acknowledged there have been growing global concerns about China's technological innovations, with some pointing to the term "China Shock 2.0," as they see the nation's high-tech boom as a threat to many advanced economies. Instead, that should be seen as "China Opportunity 2.0," he said. "From the global development perspective, 'China Opportunity 2.0' means there'll be broader access to advanced technologies and more widely shared benefits," Li said. "China's emerging technologies and products are bringing to the world not shocks, but opportunities," he added. "Not threats, but empowerment." China's tech advancements and growing exports of EVs, solar panels, chips, batteries, AI and robotics have offered affordable options to global markets, but also have raised criticisms among governments concerned about issues such as oversupply. Some are taking protectionist measures. Li also dismissed claims that the rise of China's high-tech sectors was because of massive government subsidies. US and European policymakers have raised worries over Chinese state subsidies creating unfairness to their industries, while a June report by the 38-country Organisation for Economic Cooperation and Development, or OECD, said huge state subsidies, including those in China, can distort global markets and create unfair competitive advantages. "There are some people who say that Chinese products are competitive mainly because the Chinese government's subsidies," Li said in his speech. "That's not true. The Chinese government is not that wealthy." China's large domestic market, which allows the mass and fast deployment of new technologies among its population of 1.4 billion, and huge corporate investments are among the key factors in its robust tech advancements, he said. Li also name-checked Chinese tech giant Huawei, which has faced Western restrictions, and robotics company Unitree, both of which have risen quickly in size and market share, as examples of China's innovation success. An expansion earlier this month of the Pentagon's list of Chinese military-linked companies included Unitree, preventing the firm from landing US defence contracts. The list also includes Huawei.

Singling out Huawei, China's premier defends tech rise, rejects subsidy claims

China's Premier Li Qiang has pushed back against claims that state subsidies fuel the nation's tech advancements in areas like AI and EVs. Speaking at a World Economic Forum summit, he attributed China's innovation to substantial firm investments, citing Huawei's resilience against foreign restrictions. Analysts warn of a potential European trade front mirroring US concerns over Chinese state support and its impact on critical technologies. China's Premier Li Qiang defended on Wednesday his country's emergence in frontier technologies from AI to electric vehicles, rejecting accusations it was down to state subsidies, in a speech at a World Economic Forum summit in Dalian. Singling out Huawei as having "long suffered from foreign restrictions," but without ⁠referencing the ⁠United States or European Union, which have both curbed the company's role in critical infrastructure, Li said China's prowess in technology and innovation was down to the huge sums its firms invest. "People say Chinese products are competitive mainly because the Chinese government extends subsidies, but that is not the case: the Chinese government is not that ⁠wealthy," the country's No.2 official added, in a rare moment of joviality for the man in charge of the $20 trillion economy's day-to-day ⁠operations. Beijing could soon confront a second, European front in its trade war with the West, analysts say, as Brussels increasingly echoes Washington's concerns over alleged state support for Chinese firms and the risk they could dominate critical technologies including AI, big data and manufacturing. Li struck a defiant tone in the northeastern Chinese port city, highlighting China's achievements in multi-use rockets, quantum technology and semiconductors. He also pointed to the rapid pace at which Chinese researchers are consuming AI tokens in their pursuit of fresh advances. The U.S. earlier ⁠this month expanded the Pentagon's blacklist of alleged "Chinese military companies" to 188 entities, reflecting concerns China's military could tap the private sector for advancements. Li said China would continue to participate in global discussions on the governance of AI and other frontier technologies with a "responsible and constructive attitude," debates which experts say will have major ramifications for the use of these technologies on battlefields and in civilian life.