Page 498 - 2021 White Paper
P. 498
1 White Paper on the Business Environment in China
increasing economic importance. Therefore, of the latest technology at competitive prices.
considerable efforts have been made in the last In an increasingly bifurcated world, it might be
decade to increase the presence in international surprising to learn that global companies have
standardization. Due to massive state funding, long encouraged their competitors, including
there is an increase in Chinese initiatives, Chinese companies, to bring their contributions
particularly in those areas of standardization to the table at international standards
where the state has defined these as priority development organizations. The idea behind
topics (Donath). including all players is to foster global market
access and avoid islands of technology that
With mistrust pervading the US-China hurt consumers. However, when policymakers
relationship, it seems that nearly any Chinese noticed a significant uptick in Chinese company
action stokes suspicions of malicious intent, participation in emerging technology standards
especially anything involving advanced work, particularly in technical committees
technology. As 5G, AI, and emerging technology dealing with 5G and telecommunications,
have become buzzwords, policymakers have they understandably became concerned.
started to pay more attention to a previously As contributions from a few large Chinese
obscure piece of the technology development companies increased, they sometimes seemed
process: technical standards. In particular, U.S. to overwhelm the agendas of working groups.
officials have been concerned about China’s Yet, in this instance, policymakers have mistaken
increased participation in technical standards quantity for quality, and numbers alone don’t lead
development work and the government’s to market dominance. Technical standards work
forthcoming plan. In a climate of heightened is a competitive process, in which contributions
fear and uncertainty, it is easy to see boogeymen are accepted by consensus among subject matter
lurking behind every corner. As policymakers seek experts, and others are weeded out. There are,
to separate true threats from long shadows, it is of course, very good technical contributions
important to distinguish Chinese posturing and from Chinese companies that have invested in
proclamations from real risks. As policymakers their product development and learned how
have become increasingly concerned about the the standards system works. Ironically, the
potential connection between technical standards Chinese government’s proclamations and U.S.
and China’s technological advantage, focus on policymakers’ interpretation belie foundational
China Standards 2035 has heightened. However, misunderstandings of standards. International
in order to assess these concerns, it is important standards are not required rules, laws, or even
to first understand the international standards norms. Companies choose the most appropriate
system. The technical standards community lives standards for their products, which change with
by the tenets of industry leadership, openness, rapidly developing technology. The notion that
rules-based, consensus decision making, and the Chinese government is going to swindle the
voluntary adoption of international standards. world’s best engineers into adopting voluntary
The whole system rests on the premise that any standards that will shape the technological
interested stakeholder can come to the table to landscape in China’s favor, and continue to do so
cooperate and compete, proposing contributions with every technological change, is a significant
that enable products and services to work for reach. US and multinational technology
consumers around the globe while safeguarding companies remain strong competitors and
against undue dominance of any one player. leaders in their fields and in the associated
Consumers reap the benefits of this everyday— development of technical standards. However,
for example, international standards ensure that China is a real competitor, and as Chinese
your laptop can connect to Wi-Fi in the United companies advance we should expect to see
States and Japan; or that an HDMI cable can that reflected in their participation (and success)
plug into any TV, regardless of brand name. in international standards bodies. Successful
That’s the goal of standards development—to contributions can help companies’ products
enable interoperability across markets, so that reach more consumers and markets and enable
consumers and companies can take full advantage them to stay competitive in an ever-changing
498
increasing economic importance. Therefore, of the latest technology at competitive prices.
considerable efforts have been made in the last In an increasingly bifurcated world, it might be
decade to increase the presence in international surprising to learn that global companies have
standardization. Due to massive state funding, long encouraged their competitors, including
there is an increase in Chinese initiatives, Chinese companies, to bring their contributions
particularly in those areas of standardization to the table at international standards
where the state has defined these as priority development organizations. The idea behind
topics (Donath). including all players is to foster global market
access and avoid islands of technology that
With mistrust pervading the US-China hurt consumers. However, when policymakers
relationship, it seems that nearly any Chinese noticed a significant uptick in Chinese company
action stokes suspicions of malicious intent, participation in emerging technology standards
especially anything involving advanced work, particularly in technical committees
technology. As 5G, AI, and emerging technology dealing with 5G and telecommunications,
have become buzzwords, policymakers have they understandably became concerned.
started to pay more attention to a previously As contributions from a few large Chinese
obscure piece of the technology development companies increased, they sometimes seemed
process: technical standards. In particular, U.S. to overwhelm the agendas of working groups.
officials have been concerned about China’s Yet, in this instance, policymakers have mistaken
increased participation in technical standards quantity for quality, and numbers alone don’t lead
development work and the government’s to market dominance. Technical standards work
forthcoming plan. In a climate of heightened is a competitive process, in which contributions
fear and uncertainty, it is easy to see boogeymen are accepted by consensus among subject matter
lurking behind every corner. As policymakers seek experts, and others are weeded out. There are,
to separate true threats from long shadows, it is of course, very good technical contributions
important to distinguish Chinese posturing and from Chinese companies that have invested in
proclamations from real risks. As policymakers their product development and learned how
have become increasingly concerned about the the standards system works. Ironically, the
potential connection between technical standards Chinese government’s proclamations and U.S.
and China’s technological advantage, focus on policymakers’ interpretation belie foundational
China Standards 2035 has heightened. However, misunderstandings of standards. International
in order to assess these concerns, it is important standards are not required rules, laws, or even
to first understand the international standards norms. Companies choose the most appropriate
system. The technical standards community lives standards for their products, which change with
by the tenets of industry leadership, openness, rapidly developing technology. The notion that
rules-based, consensus decision making, and the Chinese government is going to swindle the
voluntary adoption of international standards. world’s best engineers into adopting voluntary
The whole system rests on the premise that any standards that will shape the technological
interested stakeholder can come to the table to landscape in China’s favor, and continue to do so
cooperate and compete, proposing contributions with every technological change, is a significant
that enable products and services to work for reach. US and multinational technology
consumers around the globe while safeguarding companies remain strong competitors and
against undue dominance of any one player. leaders in their fields and in the associated
Consumers reap the benefits of this everyday— development of technical standards. However,
for example, international standards ensure that China is a real competitor, and as Chinese
your laptop can connect to Wi-Fi in the United companies advance we should expect to see
States and Japan; or that an HDMI cable can that reflected in their participation (and success)
plug into any TV, regardless of brand name. in international standards bodies. Successful
That’s the goal of standards development—to contributions can help companies’ products
enable interoperability across markets, so that reach more consumers and markets and enable
consumers and companies can take full advantage them to stay competitive in an ever-changing
498
