WSJ What’s News - Inside China’s Pursuit of Tech Dominance–and What It Means for the U.S.

Episode Date: December 14, 2025

The world’s second-biggest economy has been making major inroads on the technology front from artificial intelligence to autonomous driving. China’s ascendence is also complicating its relationship with the U.S., which has long been the center of this kind of innovation. In this special episode of What’s News Sunday, Lingling Wei, WSJ’s Chief China Correspondent, addresses audience questions related to this dynamic and is joined by Peter Landers, WSJ’s Asia Business Editor, and Victor Wang, a Silicon Valley venture capitalist. Sign up for the WSJ China newsletter. Learn more about your ad choices. Visit megaphone.fm/adchoices

If you're early in your career and looking for insight, inspiration, and honest advice, listen to the Capital Ideas podcast. Hear from Capital Group professionals about leaning into the differences that make you unique, making decisions that last, and what it means to lead with purpose. The Capital Ideas Podcast, from Capital Group, available wherever you listen. Published by Capital Client Group, Inc. Are we ready? Hello, and welcome to the World's News Sunday podcast. I'm Lingling Wei, your host today. I'm the chief China correspondent for the Wall Street Journal.

Every week, I dive into the world's second largest economy and is complex relationship with the U.S. in my newsletter, WSJ China. And recently, I asked my readers, what are your biggest questions about the U.S.-China technology race? The response has been enormous and the questions cut right to the heart

of what makes this one of the most defining stories of our time. When we talk about China today, we're really telling a tale of our time. two China's. One story is about China's economic struggle. The country's 40-year investment-driven boom is over. It's grappling with a collapsed property market, soaring youth unemployment, and deepening deflation. But the other story is about its technological progress. In fields like AI, quantum computing, telecommunications, and clean energy, China isn't just a competitor, In some cases, it may be setting the pace.

To help answer some questions, I'm bringing in my colleague Peter Landers, Wall Street Journal's Asia Business Editor, based in Singapore. This year, he's taken a few trips to China and has very recent firsthand knowledge of the technology landscape there. Thanks for joining me, Peter. You bet. Peter, our first question is from Glenn Loveland,

from Scottsdale, Arizona. Hi, Lingling. My question is, China is moving at an extraordinary pace in applied AI, EV infrastructure, and integrated mobility, building smart cities at a scale that reflects powerful alignment between industry, policy, and talent.

New visa policies are also drawing in foreign expertise to accelerate this momentum. At the same time, some expatriates, including those from China, are fleeing the U.S. under Trump 2.0. My question for you, based on what you're seeing, in which of these domains is China not just catching up, but setting new global standards? Thank you. Excellent question, Glenn. Look, China's progress is most visible in areas like electric cars, infrastructure. and the application of AI.

They're doing incredible things. Whether they're actually writing the global rulebook for those industries, that's another matter entirely. A lot of China's changing technologies, they're often proprietary, or they're just flat out incompatible with the system we use here in the United States or in Europe. But here's the kicker. Is the world really going to adopt? a smart city blueprint that is built on China's very specific model of mass surveillance

and centralized data control. I'm highly doubtful on that one. Peter, what are you seeing on the ground in China? When I was in Beijing this summer, I had a chance to ride in a couple of Chinese robotaxies. And to your point, Ling Ling, even the Chinese robotaxy companies and experts in the field say that Google sister Waymo is probably ahead in the latest technology for autonomous driving. The Chinese companies like We Ride, Pony AI, Apollo Go. They're definitely watching Google very closely. And any paper that Google might publish about its algorithms for robo-taxies, those are sure to be scrutinized carefully by the Chinese robotaxy companies. And so it's a race really to get global markets, the U.S. market is not really open to these Chinese companies, but other global

markets are, and it's a race who can get there first and spread their technology. And I got the sense that China might ultimately win and set the global standard five to ten years from now just because their robotaxies are more affordable. And companies are more active even than Waymo in trying to set up demonstration projects and experimental projects in the Middle East, in European countries, So I think it's a race in many areas, not just robo-taxies. I offered that as one example. And it's also in AI and things like LLMs. So it's a race to set those global standards for AI and also be the most widely used.

Seems to me that what China is adopting here is really a good enough strategy. I think that's right. And with robo-taxies, of course, safety is the overriding determinant, I think, if a Chinese robotaxie can get from data to point B safely, then why not go for the cheaper Chinese model? Let's tackle the next one,

Nicholas Misakos from San Francisco. Does Beijing believe the West has reached kind of its pinnacle? And there's a fulcrum point where now China is now intentionally positioning itself to be the center of gravity for new economic, technological,

and even energy development that would be directly competitive with U.S.-led systems. That is a fantastic question because it gets at the heart of Beijing's long-term strategic mindset. Beijing has been working under a fundamental assumption that the relative power of the West and specifically the United States is in a decline. They say the East is rising, the West is declining. Right now, the Chinese see a historical opportunity and they're intentionally positioning themselves

to become the new center of gravity for the world. They're basically building infrastructure and trade networks that literally seek to bypass the systems long established by the United States. And with tech, they're aiming to be self-sufficient in critical technologies like semiconductors and AI, not just to catch up, but to be the global leader and setter of standards. What do you think, Peter? What you said is entirely right, and so many fields that China is taking the world lead-in. I had the opportunity when I was in China to take the bullet train from Beijing South Station to

Hangzhou. It's four hours and 20 minutes, roughly. As someone who lived in Japan for a long time, and took a lot of bullet trains that are very fast and efficient and clean and enjoyable. I was just bowled over by how pleasant this train was as well. Certainly when it comes, for example, anybody around the world who wants to build a high-speed rail system would probably want to consider relying on Chinese technology, Chinese trains, and the operation system. And whenever we talk about China dominating or hoping to dominate so many different fields, whether it be AI, chips, bullet trains, robotaxies, you name it. And the world gets nothing, only the right to buy these Chinese technologies

and kind of be subservient to Beijing's leadership. One wonders whether the rest of the world really wants to be in that position. There is a contradiction in trying to dominate everything without thinking of what the rest of the world needs and also what the rest of the world can give China in return for these technologies. All right, Peter, thank you so much for staying up late. to answer those questions. So I really appreciate your inviting me, Lingling.

Coming up, the U.S. and China have been negotiating and renegotiating their terms on critical minerals used to make your iPhones, laptops, military jets, and more. We'll have more questions from my newsletter subscribers after the break. Canada's Wonderland is bringing the holiday magic this season with Winterfest on select nights now through January 3rd. Step into a winter wonderland filled with millions of dazzling lights, festive shows, rides, and holiday treats. Plus, Coca-Cola is back with Canada's kindest community, celebrating acts of kindness nationwide with a chance at 100,000 donation for the winning community and a 2026 holiday character. and stop. Learn more at canadaswunderland.com.

Welcome back. Now let's get our question from Rem Ramanasson in Houston, Texas. Regarding the recent compromises between the U.S. and China about critical minerals, but given these compromises or short term, what do you think is the long-term resolution of this tariff and critical minerals and chips access issues that the two nations are grappling with. Thank you, Ram, for your question. So let's be blunt, Ram, there is no simple resolution here. The compromises you see now, those are very temporary measures, essentially for both sides to just buy time to build up their respective industrial independence.

The U.S. is investing billions of dollars in things like trips manufacturing and cutting critical mineral deals with partners like Australia and Canada. And the goal for the United States is a China-free supply train for the most sensitive technologies. And for China, it is simultaneously pouring billions, if not trillions, into its own self-sufficient. So in the long run, it appears as though the two systems are simply going to drift apart in the most strategic areas, a managed economic divorce. I also posed RAMP's question to Victor Wong, the founder and managing partner of AIMT ventures in Silicon Valley. Victor's firm invest in early-stage technology startups focused on AI and robotics, among other areas. So, Victor, what do you think? In terms of AI race, the most important foundations are three things.

Number one, AI chips. Number two, the electricity or power availability. Number three, the AI model capability. And on the model side, it's really hard to monopolize because there's a lot of publications and exchanges academically. The power side, I think China is having more power available than the U.S. So the U.S. really have the advantage in the AI chips, maybe a couple of generations ahead of China. So that's a strategic interest for the United States. On the other hand, China, they've

been investing a lot of money to build their own supply chain. So what I will see, will be two parallel technical system. China will develop their own chips, and the U.S. and the rest of the world will be another system. So in terms of the Chinese strategy, obviously in the long run, what they're aiming for is a system

that doesn't require imports of a lot of foreign stuff. But in the near to medium term, they still need access to advanced American technology. So their strategy right now is, you know, let's slow down the decoupling for as long as possible so that they can keep getting the stuff. Yes. Similarly, from the U.S. side, the reason U.S. are willing to make a compromise over the rare earth element is because U.S. still cannot produce enough rare earth minerals.

Right. So once they can produce enough, they probably don't care anymore. Similarly, if China can produce their... own advanced AI chips, they probably don't care about the export control anymore. Fascinating. Thank you so much, Victor, for your time. Really appreciate it. You're welcome, Leni. Since we recorded the interview with Victor, a concession was made by Washington on the chip front. President Trump is allowing Nvidia to sell its higher-performing as 200 AI chips to China.

For Beijing, this could be a big win because right now, is still lagging in the AI race. Having a high-quality chip like that could give the country a chance to catch up. And finally, our last question comes from Eugene Grace, from Paoli, Pennsylvania. What is the quality of information coming out of China? Are journalists given sufficient freedom to gather information,

or are their limitations placed on them which would make their reporting less credible? That's a question that hits right at the core of what we do, Eugene, and I truly appreciate you asking it. The short answer is, yes, there are significant limitations and makes our reporting incredibly challenging. I won't sugar-coded. In China, journalists operate on their environment. where press freedom is consistently rated as one of the most restrictive in the world. Journalists face routine challenges like being blocked or followed by officials of plainclothes security. The irony is that as China has become harder to cover, it has also become more vital for us to get it right. So how do we tackle this challenge and ensure our reporting remains credible?

and meaningful. We stay humble and we get creative. We don't just rely on official data or statements. We combine deep dives into policy documents with relentless sourcing from people inside and outside mainland. And it's a team effort. Our colleagues, like Peter, who have decades of collective experience, constantly cross-referencing information and vetting every detail. We understand the risk, and that deep commitment to verification is what allows us to stand by our reporting, to give you the clearest, most nuanced, and most credible picture of China that we possibly can. Eugene, thank you so much again for that powerful question. And that's it for this week's special edition of What's News Sunday?

Today's show was produced by Anthony Bansy with supervising producer Jenna Heron. Philona Patterson edited this episode. I'm Lingling Wei, and thank you for joining me on this little experiment. Let me know if you'd like to ask me more questions. You can send an email to WNPOD at WSJ.com or leave a voicemail at 212-416-436-4-3-3-2. 28. What's News will be back tomorrow morning with a brand new show. Until then, thank you for listening.