The United States and the People’s Republic of China (PRC) are locked in a race to lead the development of critical and emerging technologies (CETs), such as artificial intelligence (AI), 5G, quantum technologies, and others. Both nations have distinct ambitions, and their own strategic plans aimed at securing their dominance in these fields. Despite the significance of this CET race—which bears both economic implications and related security concerns—technical standards, a critical element of this competition, have only recently begun to receive the attention they deserve.
Technical standards provide detailed specifications for how technologies should be designed and implemented to ensure that they meet performance benchmarks and are compatible with other products. Often described as the “connective tissue” between technology and the market, these standards establish the guidelines for products, services, and systems. [1]
The importance of technical standards, particularly in recent years, can be attributed to several factors. First, technical standards have become powerful instruments of geopolitical influence. Nations have recognized that the rules and specifications governing technologies significantly shape the balance of power in today’s interconnected world. [2] Standards dictate how devices, systems, and networks operate and interact, thereby influencing a country’s competitiveness, national security, and military capabilities. Second, technical standards can be a lucrative business opportunity. Significant profits can be generated through licensing fees, as the adoption of certain standards often necessitates the use of patented technologies. [3] This dynamic creates path dependencies that favor certain companies supplying these critical technologies—and as a result, grants them a competitive advantage. Finally, governments increasingly view digital technologies as symbols of their socioeconomic power. By actively participating in standardization processes, a nation can enhance its prestige on the global stage and solidify its position as a leader in technological innovation.
Formal technology standards are developed through various organizations. The use of international standards has been integral to the World Trade Organization (WTO) framework, particularly under the Technical Barriers to Trade (TBT) agreement. However, the process is less clear for many internet-enabled technologies, which often blur the boundaries between goods and services. Key international bodies involved in setting standards for digital technologies include the International Organization for Standardization (ISO) and the International Electrotechnical Commission Joint Technical Committee for Information Technology Standards (ISO/IEC JTC1). Both the ISO and IEC are non-governmental, member-based organizations that develop standards through a consensus-driven process, with each ISO member represented by a national standards body, which may be industry-led or government-run.
Treaty-based organizations, such as the International Telecommunications Union (ITU), also play a significant role. As a treaty-level entity, the ITU stands out from other standard-setting bodies. While industry members can participate as Sector Members in the ITU’s standards-making arm (ITU-T), only member states determine the ITU’s strategic direction and budget. The ITU issues standards through recommendations as part of its broader agenda. Additionally, industry consortia contribute to the standards ecosystem. Notable examples include the World Wide Web Consortium (W3C) and the Internet Engineering Task Force (IETF). Many of these organizations, such as the Institute of Electrical and Electronics Engineers (IEEE), are based in the United States but identify as international standard-setting bodies due to their adherence to TBT principles. The Third Generation Partnership Project (3GPP), for instance, operates as an umbrella organization producing technical specifications for wireless technologies, including 5G. These specifications are negotiated among national telecommunications standards associations that comprise their membership.
The multifaceted ecosystem of international standards has evolved over decades, encompassing a diverse range of organizations and processes. In recent years, China has significantly prioritized and actively participated in the global technology standards-setting process.
China’s Increasing Role in Global Technology Standards-Setting Processes
As part of its long-term strategy to establish itself as a leading cyberpower, in recent years China has increasingly exerted efforts to dominate international standards for critical and emerging technologies. This ambition is not new: as early as 2006, the PRC State Council articulated its intention to actively participate in international standards development and to promote the adoption of Chinese technology standards on a global scale.
While initial efforts to achieve these objectives have met with limited success, China has gradually expanded its influence within international organizations that are responsible for technological standardization. For Chinese policymakers, leadership in setting global technology standards is perceived as a hallmark of technological and geopolitical power. Because standard setting enables China to shape the global technological landscape in alignment with its national interests, the pursuit of economic and geopolitical leverage is central to China’s ambitions.
China’s approach to influencing international technology standards-setting is multifaceted. By establishing international standards, the PRC strategically integrates its ideological agenda with its geopolitical and economic objectives. This approach compels domestic enterprises to support state-led standards initiatives by investing heavily in research on standards development and promoting frameworks that embed authoritarian principles, such as enhanced government control over digital technologies. The PRC’s efforts include deploying large government delegations to international standards bodies and submitting an overwhelming number of proposals to these same bodies, often securing successes that bolster Chinese industries while undermining principles of fair competition and technical neutrality. [4]
China’s most prominent initiative in this regard is its “China Standards 2035” project, which was launched in 2020 as a continuation of the “Made in China 2025” industrial policy. While the latter focused on increasing China’s manufacturing output and cementing its position in global supply chains, “China Standards 2035” aims to establish a governing framework for emerging technologies such as AI, 5G, and internet of things (IoT), thereby enhancing China’s industrial and technological competitiveness. Complementing this effort, the National Standardization Development Outline (國家標準化發展綱要) (“Outline”), issued in 2021, provides a comprehensive blueprint for advancing China’s standardization agenda across multiple domains, including technology, environmental sustainability, and social governance.
The Outline emphasizes the role of standardization in bolstering national competitiveness and advancing economic and social development. Although it continues to emphasize a state-driven approach, it also explicitly calls for greater involvement from market actors, suggesting a strategic shift to integrate industry players into China’s broader standardization goals. To translate its ambitions into reality, China actively encourages participation in key organizations such as the ISO, the IEC, and the ITU. Substantial subsidies are provided to incentivize Chinese entities to contribute to these bodies, with significant rewards allocated to experts and organizations that achieve international recognition for their standards contributions.
In recent years, China has demonstrated its diplomatic acumen by increasing its representation in leadership positions within key working groups and technical committees of international standards bodies. This influence has enabled China to push for the acceptance of Chinese technical standards as de facto international norms, particularly in critical sectors. However, this has also raised concerns about the implications for fair competition, human rights, and global governance.
Critics warn that China’s growing influence in standards-setting could allow it to constrain other countries’ policy choices or manipulate the global technological ecosystem. For instance, China could restrict access to standards-essential technologies, potentially disrupting network infrastructure and causing economic harm to competitors. Additionally, Chinese dominance in standards-setting may lead to a bifurcation of technical standards, particularly in emerging technologies, as Beijing leverages de facto standards through memorandums of understanding and technology exports. Proponents of China’s approach, however, argue that fears of monopolization are overstated. They highlight the inherent complexity and technical nature of international standards-setting processes, which they claim are resistant to domination by any single actor. Moreover, they emphasize the resilience of the existing international standardization system against unilateral influence.
The intensifying competition between the United States and China in this domain underscores the broader geopolitical stakes. The release of the US Government’s National Standards Strategy for Critical and Emerging Technology in May 2023 reflects growing American concerns about China’s expanding role in standards-setting. This development highlights the increasing politicization of what were once seen as highly technical discussions, given their strategic and economic significance.
In light of these developments, the implications of China’s expanding influence on global standards-setting processes must also be considered within the context of Taiwan. Given the political dynamics across the Taiwan Strait, this issue warrants a closer examination of the potential risks and opportunities it presents for Taiwan’s technological and economic future.
Taiwan’s Technological Future Amid China’s Standards Ascendancy
As China emerges as one of the major players in establishing international technical standards for strategically crucial technologies, it is imperative to analyze the associated risks and potential opportunities for Taiwan. China’s expanding influence in technological standard-setting poses significant challenges for countries with which it shares economic or political rivalries, and/or those that are targets of PRC coercive pressure. Taiwan represents a pertinent case in this context. Despite its robust economy, valued at approximately USD $755 billion, and its position as a global leader in advanced industries such as semiconductors, Taiwan remains excluded from nearly all intergovernmental organizations.
The risks associated with China’s growing role in technical standard-setting for Taiwan can be examined through economic and industrial, political and strategic, and broader geopolitical dimensions. Economically and industrially, China’s leadership in global standards, particularly in emerging technologies, could reshape technical requirements and certification processes. Taiwanese technology firms may encounter challenges in meeting these standards, potentially restricting their access to global supply chains that increasingly adopt Chinese-defined norms.
Politically and strategically, the promotion of technical standards favorable to its technologies enables China to strengthen its influence in the global technology market. This dynamic could ultimately increase Beijing’s leverage over Taiwan, as Taiwanese policymakers and businesses may need to navigate these standards to maintain economic viability. From a geopolitical perspective, Taiwan’s strategic alignment with Western countries, particularly the United States, could be complicated if Chinese standards gain global acceptance. This situation may create tensions in Taiwan’s efforts to balance its economic reliance on China with its security dependence on the United States. Furthermore, China’s influence in standard-setting could function as a soft power mechanism, undermining Taiwan’s endeavors to bolster its global standing and international partnerships.
Despite these risks, the rising significance of technical standards also presents potential advantages for Taiwan. In certain sectors, Taiwan boasts globally competitive firms, particularly in cutting-edge industries. Heightened scrutiny of Chinese-manufactured or designed technologies—whether due to security concerns or broader geopolitical considerations—may provide Taiwan with opportunities to position itself as a credible and secure partner in global standard-setting. By emphasizing its strengths in areas such as data protection, Taiwan could effectively demonstrate its reliability and appeal as a constructive participant in shaping international technological standards.
While some might argue that China’s exclusionary tactics will hinder Taiwan’s participation in intergovernmental bodies such as the United Nations, it is important to recognize the declining relevance of such institutions in global standard-setting. In many domains, the critical work influencing the technological landscape is spearheaded by private sector–led and engineer-driven organizations. For instance, groups such as the Internet Engineering Task Force (IETF), the Institute of Electrical and Electronics Engineers (IEEE), and the World Wide Web Consortium (W3C) play instrumental roles in shaping the future of the internet. Taiwan should focus its efforts on engaging with these crucial standard-setting entities, where governmental influence is comparatively limited. Even in cases involving government-led organizations like the ITU, the contributions of corporate members often carry significant weight. Taiwanese technology firms could collaborate with multinational corporations participating in these forums to influence agendas, debates, and the eventual standards adopted by a majority of companies.
However, to effectively mitigate the aforementioned risks associated with China’s ascendancy in international standard-setting, Taiwanese policymakers must adopt proactive strategies. One critical policy involves fostering technological innovation, which has historically been the foundation of Taiwan’s comparative advantage. Strengthening Taiwan’s innovative ecosystem is essential for maintaining global competitiveness and resilience against external pressures. To ensure an innovative future, the Taiwanese government should continue its emphasis on hardware while addressing the growing significance of hardware-software integration in emerging industries. As the next phase of chip design unfolds, partnerships and supportive policies facilitating rapid research, development, and testing will be vital.
Another essential strategy involves pursuing market-based approaches rather than solely technology-focused ones. Given Taiwan’s limited domestic market of 23 million people, achieving scale will necessitate reliance on international markets and the expansion of global partnerships. Initiatives like the “Asian Silicon Valley” project, launched in 2016, exemplify Taiwan’s commitment to fostering innovation. This initiative has facilitated the participation of Taiwanese startups in Silicon Valley accelerators, enabling them to gain insights into the US market, refine their products, and establish international connections.
Subsequent efforts, such as the 2018 action plan for enhancing Taiwan’s startup ecosystem, have further underscored the government’s dedication to innovation. This plan includes measures such as government-backed participation in international trade shows, incentives for startup procurement, and legal reforms to attract foreign talent. More recently, the Cabinet’s approval of a proposal by the National Development Council (NDC, 國家發展委員會) in September 2024 highlights Taiwan’s focus on bolstering key sectors, including semiconductors and artificial intelligence. The proposal anticipates a significant increase in production value and job creation, emphasizing Taiwan’s role in the global semiconductor supply chain and its ambition to advance AI capabilities. Additionally, In June 2024, the Executive Yuan (行政院) unveiled the “Taiwan AI Action Plan 2.0,” with the objective of increasing the nation’s AI industry value by over USD $8.16 billion. This initiative seeks to enhance Taiwan’s AI capabilities through five primary pillars: talent development, technological and industrial advancement, supportive infrastructure, international collaboration, and societal and humanitarian engagement.
These initiatives demonstrate the continuity of innovation policies under President Lai Ching-te’s (賴清德) administration, building on the foundation laid by former President Tsai Ing-wen (蔡英文). Nevertheless, technological innovation alone may not suffice to address the risks posed by China’s growing influence. Taiwanese policymakers must also develop a comprehensive understanding of the interconnected issues related to standards, digital trade, and internet governance. Establishing regular dialogues among domestic standards communities, industry stakeholders, and relevant government entities would facilitate knowledge sharing and emphasize the critical role of standards in emerging technologies.
To address the increasing complexity at the intersection of technology, trade, standards, and security, Taiwan should allocate additional resources to support exchanges of best practices with other Indo-Pacific economies. This approach would enhance Taiwan’s regulatory and industry expertise, particularly in policy areas such as privacy, data, and telecommunications.
Ultimately, it is in Taiwan’s national interest to collaborate with international partners to advocate for a balanced and transparent approach to rule-setting in emerging technologies and global digital trade. Given the centrality of emerging technologies in driving economic growth and development, the establishment of mutually agreed international rules on standards will only grow in importance in the years to come.
The main point: In recent years, China has exerted efforts to dominate international standards for critical and emerging technologies. If China’s desired standards become the international norms, Taiwan industries may face obstacles in meeting those standards and accessing global supply chains. To counter this, Taiwanese policymakers need to act proactively by cooperating with domestic communities and stakeholders and other Indo-Pacific economies.
[1] Hilary McGeachy, “US-China Technology Competition: Impacting a Rules-Based Order — United States Studies Centre,” The United States Study Centre, no 3. May (2019).
[2] Julia Voo and Rogier Creemers, “China’s Role in Digital Standards for Emerging Technologies China’s Role in Digital Standards for Emerging Technologies-Impacts on the Netherlands and Europe,” LeidenAsiaCentre, 2021.
[3] Ibid.
[4] Raphael Padula and Diego Eugênio Pizetta, “The Increasing Dispute between USA and China over International Standardization,” Revista Brasileira de Politica Internacional 65, no. 1 (2022): 1–20, https://doi.org/10.1590/0034-7329202200112.
