"China's efforts are driven by the desire to outdo the West, as well as amass profits. Standards based on patented technologies often require users to pay licensing fees. Nokia Corp. and Qualcomm Inc., for instance, earn billions of dollars annually from patents that underpin cellphone systems made by rivals. China would rather earn that kind of money by designing standards to match technologies developed by its own companies.
Standards are gaining urgency as rules are being decided for a new generation of technologies dependent on 5G networks, including driverless vehicles, so-called smart cities and the Internet of Things—advances that will connect the digital and physical worlds as never before.
New fields including facial recognition touch on privacy and public safety, with greater consequences for national security than in the past, according to the congressional committee.
China is promoting standards that would boost exports for companies with links to Beijing as well as support its state-security apparatus, said Japan's former trade minister Akira Amari, who heads a Japanese ruling-party group on making society more digital. "If Chinese products are set up to collect data," he said, "you have to work on the assumption that it will all end up with the Chinese government."
Beijing and regional governments provide annual stipends of up to one million yuan, about $155,000, for companies leading development of international standards at ISO and other bodies, according to official documents.
Western funding for standards development, which can take years of costly research and negotiations, has dwindled. Without a change, "we shouldn't be surprised if we end up playing by Chinese rules," said Christoph Winterhalter, chief executive of the German Institute for Standardization, known as DIN." [1]
1. From Lightbulbs to 5G, China Battles West for Control of Vital Technology Standards; Whoever has control of industrial norms for telecommunications, electricity transmission and artificial intelligence is in a position to dominate
Pop, Valentina; Sha Hua; Michaels, Daniel. Wall Street Journal (Online); New York, N.Y. [New York, N.Y]08 Feb 2021.
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