Neoliberals in the West are asleep at the wheel. The ideology that public investment cannot drive growth means that China is hundreds of miles ahead in the drive towards the fourth industrial revolution (where AI and automation take a dominant role in the economy).
While international coexistence should be the aim, Western nations risk being left in the dust. And, given the West’s propensity for seeking domination, happy coexistence may well not be on the cards.
2025 growth
On 15 January, the Office for National Statistics (ONS) found that UK growth was 0.1% in the three months leading to November. Estimates for overall 2025 growth are at 1.4%, continuing the low growth since the 2008 financial crash, GDP increases that had also been in decline for decades before.
Meanwhile, China’s projected growth for 2025 is 5%. This is not just to do with the ‘catch up impact’ – the fact that China is a middle income country with more to gain, but that China’s public investment is driving high growth in tech.
China’s tech leadership
In 2024, China installed more industrial robots than the rest of the world combined at 54% of global installations. This is continued tech growth. In 2023, China held 41% of the global stock of industrial robots, while Japan trailed in second at 10%.
That’s not to say we should copy China in every way – it doesn’t even have free healthcare, despite it being publicly run. But China takes public stakes in strategic companies such as robotics, meaning access to cheaper resources. and research and development funding.
Energy
The fourth industrial revolution takes energy. And China’s investment in renewables (cheaper that fossil fuels, not to mention the climate crisis) makes it well placed to power automation.
It has 40% of the world’s renewable energy generation capacity. That’s more than the EU and America combined. China has also built the infrastructure for this energy, with the world’s only large-scale ultra-high-voltage (UHV) transmission network.
What drives growth
Despite its faults, China is showing that a mixed economy with public investment driving growth towards an automated economy works well. It doesn’t take only a neoliberal economy and entrepreneur to work out that convenience (e.g. from ovens and hobs to Amazon, Uber and Deliveroo, then to automation) and quality (e.g. better sensory experience like through a soundsystem) are some of the key aims. The public sector can also drive innovation and advancement.
Neoliberalism is stalling society – public sector tech investment is the way forward.
Featured image via the Canary
By James Wright
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