China intensifies technology race with US amid economic challenges

China has escalated its efforts in the ongoing technology competition with the United States, as economic imbalances continue to pose significant challenges. Premier Li Qiang stated that 'multilateralism, free trade are under severe threat', highlighting growing concerns over the global economic environment.

China has announced a 7% increase in its defence budget, alongside heightened investment in research and development. These measures are seen as part of a broader strategy to strengthen the country's technological capabilities and address mounting economic pressures.

Premier Li's remarks underscore the perceived risks to international cooperation and open markets, as tensions between major economies intensify. The emphasis on boosting defence spending and R&D reflects China's commitment to advancing its technological standing amid what officials describe as a 'high stakes' race with the US.

Observers note that the combination of increased defence expenditure and a focus on innovation is intended to bolster national security and economic resilience. However, Premier Li warned that the current global climate is challenging for multilateralism and free trade, which are seen as essential for sustainable growth.

As China moves to enhance its technological infrastructure and military capabilities, the international community continues to watch developments closely. The reported steps signal Beijing's determination to navigate economic headwinds while competing with the US in critical sectors.