China is writing the world's technology rules

It is setting standards for everything from 6G to quantum computing.

A smartphone is a testimony to the power of standardisation. Comprising components from hundreds of suppliers, it can find a signal almost anywhere in the world and connect to a wide array of ancillary devices, all because countless companies have subjected themselves to a common set of technical specifications.

How such rules are set is a mystery to most people. Global bodies such as the International Organisation for Standardisation (ISO) and the International Telecommunication Union (ITU) periodically convene companies and technology wonks to thrash out agreements.

For decades, that process has been dominated by America, Germany and Japan, whose companies have benefited handsomely from the system. IBM, an American computing firm that holds over 100,000 patents, earned a handy US$366 million (S$478 million) in 2023 from licensing its intellectual property. Qualcomm, an American semiconductor firm whose technology is ubiquitous in wireless devices, makes around a quarter of its gross profit from licensing.

Governments have long recognised the value in setting standards. Britain and Germany once tussled over the specifications for telegrams. Today, the battle over standards is between China and the West. At stake is the future of technologies ranging from wireless communication to quantum computing and artificial intelligence (AI).

In recent years, China has been growing more assertive in the standard-setting process. In September, the ITU approved three new technical standards that will be embedded in sixth-generation (6G) mobile technology. The rules relate to how networks integrate AI and produce immersive experiences in areas such as virtual reality. They were developed by the Chinese Academy of Sciences, which is controlled by the central government, and China Telecom, a state-owned firm.