New Business

The hidden standards battle: inside China’s push to rewire global manufacturing


This year marks half a century of formal diplomatic relations between China and the European Union, as well as the 25th anniversary of the founding of the European Union Chamber of Commerce in China. The fourth story in our series examining ties between the two powers focuses on China’s efforts to influence the bodies that set global manufacturing standards, an arena where Europe plays a leading role.

The 19th-century German industrialist Werner von Siemens once famously remarked that “he who owns the standards, owns the market”.

The maxim still holds true over a century later. Around the world, companies and governments are quietly investing huge resources to try and define the technical standards for new products – from electric cars to robots.

The stakes of this largely hidden battle can be enormous: the winners essentially get to write the rules for a global industry, forcing their competitors to adapt to specifications that were developed to suit the winners’ own products.

For decades, the United States and Germany have dominated the standard-setting process, giving companies like Intel and Siemens a significant advantage. But that is now starting to change.

China, once known as a factory hub for low-end products, is rapidly emerging as a technological leader in a slew of industries. And it is intent on moving from being a rule-taker to a rule-maker – the phrase “top-tier companies set standards” becoming a mantra among China’s business leaders.

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