China Enters the 'Standards War'... Pursuing Global Manufacturing Reshaping Against the US and Europe

SCMP Hong Kong Reports... China Focuses on ISO, Gaining Influence After the US and Germany

Hong Kong's South China Morning Post (SCMP) reported on the 18th that China is actively working to expand its influence within the International Organization for Standardization (ISO) with the aim of reshaping global manufacturing.

SCMP stated that this challenges Europe and the United States, which have historically led technological standards, and signifies China's ambition to leap forward as a technologically advanced nation, moving beyond its past as a hub for low-cost product manufacturing.

Establishing technical standards first goes beyond simply developing technology earlier; it can be considered a strategic weapon that preempts 'market rules' and draws competitors into one's own specifications.

US, Germany, and China Engaged in a Standards War [SCM Hong Kong Capture. Redistribution and DB Prohibited]

Through this, companies can not only gain first-mover advantages in the market and achieve dominance in global exports but also earn patent or licensing revenues. US-based Intel and Germany-based Siemens are prime examples of companies leading technological standards.

According to the report, China is actively participating in working groups, technical committees, and subcommittees of the ISO, the world's foremost standards-setting body based in Geneva, Switzerland, exerting influence comparable to that of the US and Germany.

The German Institute for Standardization (DIN) told SCMP, "China has increased its participation in discussions related to international standardization, particularly on future-oriented topics, in recent years, leading to a growing trend of China-led global standards."

In fact, as of the end of 2022, China led 1,337 international standards, accounting for approximately 5% of all standards published by ISO, the International Electrotechnical Commission (IEC), and the International Telecommunication Union (ITU). SCMP reported that by 2024, China led 142 standards within the ISO alone, increasing its share to about 9% of the total 1,533 ISO standards.

Most recently, ISO standards driven by China were released for nanodiamonds, an industrial material used in aerospace, electronics, new energy, and automotive sectors, as well as for autonomous driving test scenarios. The newspaper also highlighted China's significant role in the development of international standards for elderly care robots by the IEC.

In response, the German Engineering Federation (VDMA) stated, "China is using international standardization as a tool to realize its economic policy interests," adding, "Chinese authorities are directly intervening to gain an advantage in the standards competition, aiming to secure a competitive edge for their domestic companies."

China is engaged in a standards war with the US and Europe, with universities and companies collectively joining forces under government leadership.

In 2023, China announced the 'Action Plan for Cultivating Standardization Talents,' through which over 60 international standardization innovation teams involving more than 15 universities have been formed to accelerate international technical standards competition.

Specifically, Chinese authorities are encouraging competition by using the number of international standards published as an evaluation criterion for state-owned enterprises.

Private company Haier has entered the international standards development competition, currently operating 10 R&D centers.

Through this, Haier now holds 70% of global home appliance patents and has shed its image as a low-cost appliance manufacturer in just 10 years, according to SCMP.

Sally Yuan, Director of the International Standardization Research Center at the Shenzhen Institute of Standards and Technology, emphasized, "If Chinese companies can take the lead in establishing new technical standards in emerging industrial fields, they will become dominant players in the global market. Leading international standards means leading the market, which can increase market share."

Professor Yang Yuanyuan from Hangzhou Dianzi University in China commented, "With the joint efforts of the government and enterprises in technological innovation and continuous investment, China is transitioning from an 'international standard acceptor' to a 'leader'." Yonhap News Agency