China's progress in each of these important areas is stunning. The robotaxi revolution is gaining momentum, with the potential to transform transportation, logistics and everyday city life. The autonomous taxis, built in China at a third of the cost of building Waymo in America, cover millions of miles and are already forging partnerships in Europe and the Middle East.
Meanwhile, in medicine, China has changed from a manufacturer copying generic drugs into the world's second largest creator new drugs, including those fighting cancer. Western rivals license products from Chinese companies. The day when a pharmaceutical giant emerges from China no longer seems so far away.
The development of both industries says a lot about how Chinese innovation works. A deep talent pool, a broad production base and enormous scale they come together to move quickly up the value chain. Robotic taxi production relies on the mass production of electric cars and the dominance in the supply of LiDARs and other sensors needed for self-driving. Scale also helped reduce costs. Large numbers of patients participating in clinical trials and profits from generic drug production have accelerated innovation in the pharmaceutical industry.
Chinese officials facilitate innovation
A more surprising ingredient of China's success is its flexible and lenient regulators. As in other industries, local governments offered companies cheap loans and other assistance. But this clever rulemaking was the real turbocharge of progress. Shortly after political leaders outlined their ambitions for China to become a “biotech superpower” in 2016, the country implemented numerous reforms.
Between 2015 and 2018, the medicines regulator's staff numbers quadrupled and a backlog of 20,000 was cleared in just two years. applications for approval of new medicines. The time needed to obtain approval for human trials decreased from 501 days to 87. Last year, companies in China conducted one-third of the world's clinical trials.
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Similarly, China began experimenting with robots early. Local officials, wanting to attract talent and investment, quickly approved pilot programs and installed sensors and other digital infrastructureto help drive autonomous vehicles. Tests took place in over 50 cities. Many officials were wondering about civil liability laws and testing guidelines. Although accidents sometimes caused standstills, pilot programs helped engineers and policymakers understand the new technology.
Fierce competition in the country imposes harsh conditions on individual companies, but those that survive they become hyper-competitive export champions. China's robotaxi operators compete with each other and with cheap human-powered taxis in a deflationary economy. New technologies receive subsidies that ultimately come from the pockets of underpaid citizens. Many loss-making companies will not survive the resulting price wars. But those that do will look for work abroad.
A new wave of Chinese cheap innovations will therefore spread around the world. He will do it in different ways. China's cheap medicines could bring benefits, especially to developing countries. However, for Chinese companies the lucrative American market, which is the source of 70 percent global pharmaceutical profitsis the juiciest reward. And China's importance to Western drug chains means the relationship may even be symbiotic.
In turn, robotaxis are likely to follow a more typical path for Chinese technology exports. They are blocked by America, which has its own industry and serious security concerns, but they will presumably gain a foothold in other places where national attempts to regulate autonomous vehicles lag far behind.
Chinese technology. Opportunities and threats
How should the rest of the world react? Competition threatens to hollow out Western economies. Where there is evidence of Chinese dumping and subsidies, countermeasures against Chinese exports are justified and necessary. Where security threats exist, action is also warranted.
Data collected by robotaxis could pose a surveillance threat. Chinese pharmaceuticals have experienced corruption scandals. But reflexive protectionism in the name of security would be a mistake. Blocking or restricting the fruits of Chinese innovation would deprive consumers of the benefits of cheaper and better medicines and transportation at a time when voters are concerned about affordability.
Robotaxi presentation at the World Artificial Intelligence Conference (WAIC). Shanghai, July 27, 2025Ying Tang/NurPhoto / AFP
Therefore, Western economies would be better off rethinking the way innovation works in their country. It is tempting to be fatalistic about China's rise – to say that its dominance over the technologies of the future can only be achieved through authoritarian dictates and wasteful handouts, and therefore democracies cannot follow suit. But the ingenuity of China's private sector and the agility of its regulators were also key ingredients. Unfortunately, the West is heading in the wrong direction.
The West should draw conclusions from China's success as soon as possible
America has the scale and a deep enough wallet to compete with China. However, in many states, especially those run by Democrats, regulators block or delay the development of autonomous vehicles. The government is waging war on universities and cutting funding for basic research. As in other Western countries, it is hostile to immigrants, including talented ones.
In the field of medicines – as China's participation in clinical trials increases – Europe is losing ground under its feet. Its economies need to become even more integrated to finance and develop new technologies. There too, regulators often value safety at the expense of risk-taking and experimentation.
There is no certainty that the future will be China's. But if the West wants to compete in autonomous cars and medicine, let alone electric vehicles, solar energy and other important technologies, must draw the right conclusions from China's development.
I’m Ashley Davis as an editor, I’m committed to upholding the highest standards of integrity and accuracy in every piece we publish. My work is driven by curiosity, a passion for truth, and a belief that journalism plays a crucial role in shaping public discourse. I strive to tell stories that not only inform but also inspire action and conversation.
