China is making substantial strides in both artificial intelligence and military technology, indicating its ambitious plans to close the gap with established global powers, particularly the United States. Recent developments highlight both the achievements and adaptive strategies within China's technology and defense sectors.
A noteworthy aspect of this shift is China's approval of new generative artificial intelligence (GenAI) services. This latest batch is significant for marking the smallest number of approvals this year, signaling potential saturation within the domestic AI marketplace. While advancements have taken place rapidly, establishing China as a contender on the global stage, they now face challenges related to market overcapacity. These developments are indicative of how the country’s focus is shifting from rapid expansion to refining and optimizing existing technologies.
Meanwhile, China's military capabilities are also advancing at unprecedented rates. According to the International Institute for Strategic Studies (IISS) report, as of December 20, the People's Liberation Army Navy (PLAN) has made notable gains, narrowing the technological gap with the U.S. forces—particularly concerning vertical launch system (VLS) missile capacities. By the end of 2024, the PLAN is expected to operate 84 VLS-equipped surface ships, just shy of the U.S. Navy's 85. This statistic is emblematic of the PLAN's growth over the past two decades; back in 2005, it commanded less than 1.5% of U.S. Navy capacity. By 2015, it increased to over 13%, and now, it stands at more than 51%.
Johannes Fischbach, maritime research analyst at IISS and the report's author stated, "A 20-year comparison highlights the increase in the PLAN’s capacity." This rapid ascent is underscored by the fact China added over 1,260 new VLS cells to its fleet between 2021 and 2022 alone. While China's expansion is significant, it is compounded by the declines seen within the U.S. Navy, particularly the retirements of aging Ticonderoga-class cruisers, which have historically been some of the most armed vessels.
Fischbach's insights suggest the gap between the capacities of the two naval powers will continue to diminish. The report also emphasizes how VLS technology provides warships the flexibility to perform various operational roles, including land attacks and air defenses, which are pivotal for modern naval warfare.
Yet, the U.S. Navy still holds strategic advantages due to its advanced systems and experience. Its VLS-equipped vessels, such as the Arleigh Burke-class destroyers with the Aegis combat system, remain at the forefront of naval combat technology. Despite plans to retire several older vessels, the U.S. has opted to extend their service life, striving to maintain operational superiority even as China advances.
This competition extends beyond traditional naval engagements. The modern battlefield requires versatility and the ability to execute fast and impactful attacks. A single warship can launch various missiles before needing reloading—a complex process at sea. U.S. capabilities, such as those found on its Ohio-class submarines, present formidable challenges for China, which is still developing its underwater warfare capabilities.
While significant focus is placed on military capabilities, China's advancements do not stop with defense. The technology sector is also aggressively pursuing improvements. Recently, MediaTek announced the launch of its Dimensity 8400 processor aimed at mid-range smartphones. This new chip boosts AI integration and lowers power consumption, aiming to make advanced AI features more accessible to broader audiences. With brands like Xiaomi and Oppo quickly jumping onboard, there’s significant momentum behind democratizing access to AI technologies.
MediaTek projects approximately 12% of smartphones sold in China this year will incorporate generative AI features, surpassing the global average. The ability to integrate such advanced capabilities at lower costs not only gives Chinese manufacturers leverage against international competitors but also enhances the user experience across economic profiles.
These advancements indicate China’s dual approach of boosting technological capabilities for both civilian and military applications. By orchestrated efforts to innovate rapidly, China is not only showing its prowess on the AI front but also solidifying its military position through advancements like VLS technology. China's path forward appears aimed squarely at establishing itself as a central figure on the global stage, leveraging technology as both shield and sword.
