The ongoing technology war (now tariff war) between the United States and China has sent shockwaves across the global economy.
While the bans, sanctions, and trade restrictions have undoubtedly created hurdles for China, there is something undeniably flattering about the situation—after all, the world’s largest economy doesn’t attempt to cripple a competitor unless it sees them as a real threat.
The sheer vigour with which China has surged ahead in critical technologies is enough to shake even the most established global players.
China is no longer a mere manufacturing hub—it has become a formidable technology developer and innovator. The country leads in electric vehicles (EVs), artificial intelligence (AI), semiconductors, renewable energy, and quantum computing.
It is no surprise that Western nations are scrambling to contain its rapid advancements. But China’s response to these challenges has been nothing short of remarkable—it has doubled down on self-sufficiency, building an entire ecosystem that thrives on domestic innovation.
This dominance was humorously summed up in an interview on LBC a British phone-in and talk radio station in December 2023. When a Chinese spokesperson was asked whether China viewed Britain as a competitor, ally, or threat, he replied with piercing wit: “China is a leader in automotive, semiconductors, AI, and EVs. Britain is not in any of these. Why would China see Britain as a competitor, ally, or threat?”
This response underscores the stark reality—China has outpaced not just Britain, but much of the Western world, in the most critical technologies of the 21st century.
Gone are the days when China was known for reverse-engineering Western technology. Today, it sets global standards. Its dominance in electric vehicles has forced legacy US and European automakers to scramble for relevance.
Its AI capabilities rival those of Silicon Valley. Despite US-led restrictions, the semiconductor industry is rapidly progressing, with China focusing on Indigenous chipmaking.
More importantly, China’s success is not accidental. It is the result of long-term strategic planning, massive investments in research and development (R&D), and a robust education system that prioritises STEM fields. From high-speed rail to space exploration, China has demonstrated that technological leadership requires not just vision, but relentless execution.
Malaysia must carve its own niche
For Malaysia, there is much to take away from China’s playbook. While we may not have the scale or economic muscle of China, we are certainly moving in the right direction. Our increasing collaborations with China, particularly in capacity-building, provide valuable opportunities for our talent.
One example is the exchange programme where our Technical and Vocational Education and Training (TVET) students are sent to China to gain hands-on experience in advanced manufacturing and automation. This is precisely the kind of forward-thinking initiative that will shape Malaysia’s future workforce.
Malaysia’s role in the global semiconductor supply chain is another area where we can leverage China’s lessons. While the US-China tech war presents risks, it also presents opportunities. By positioning ourselves as a neutral and reliable partner, Malaysia can attract high-value investments and establish itself as a critical player in global technology production.
At the heart of China’s success is its ability to integrate industry, academia, and government efforts toward a common technological goal. Malaysia, too, must strengthen the synergy between these sectors. We need more aggressive investment in R&D, deeper industry-academia collaboration, and policies that encourage homegrown innovation rather than dependence on foreign technology.
If the technology war has taught us anything, it is that the future belongs to those who innovate. The US may attempt to slow China down, but it cannot stop an economy that is built on progress.
For Malaysia, the challenge is to ensure that we do not get left behind in the shifting global order. We must embrace technology, nurture talent, and remain adaptable in a world where innovation dictates power.
The rise of China should not be seen as a threat but as a source of inspiration. If a nation can go from a manufacturing base to a technology powerhouse in just a few decades, why can’t Malaysia carve its own niche?
The answer lies in our ability to learn, adapt, and commit to long-term technological growth. The race is on, and the time to act is now.
