China overtakes EU: Revolution in the power grid - what does that mean for us?

China overtakes EU: Revolution in the power grid - what does that mean for us?

China has established itself as a leader in the development of electricity network technologies by overtaking the EU in 2022 in the area of international patent applications. According to a study by the European Patent Office (EPA) and the International Energy Agency (IEA), there is a remarkable increase in registrations in recent years after they have previously stagnated. Fatih Birol, the executive director of the IEA, emphasizes the "encouraging growth of innovations", which leads China and thus imposes increased competitive pressure. While China is only in fourth place in the patent statistics in the period from 2011 to 2022, a clear picture of dynamics in the area of critical network infrastructures are emerging, where companies such as Siemens and ABB continue to dominate, such as hz.de reported.

in the context of the global gross domestic product (GDP), China's increasing dominance is also evident. While the EU was still 23.5 percent of global GDP in 2017, this proportion has decreased continuously since 1970. China's share rose rapidly from only 1.0 percent in 1970 over the years to 12.7 percent in 2017, which was an increase of almost 1,200 percent. This economic transformation is influenced not only by the growth of the population, which has grown from $ 825 million to 1.41 billion, but also by an above-average positive development of the per capita BIP, which was $ 7,207 in 2017. In contrast, the real GDP per capita of the EU and the USA remained at around $ 36,811 and $ 53,136, so the data from bpb.de .

growth in competition

The results of these developments have profound effects on the global markets. The competition for innovation and technical progress in the area of electricity networks becomes more intensive, with China acting as a motor actor and redefining international standards through his patent applications and economic rise. The relocation of innovative strength and the changed landscape of the economy illustrate the shifts in global power structure, which can be felt in both business and technology.