As emerging fields like artificial intelligence, new energy, and quantum computing define the future landscape of global power and prosperity, we—the Western world—face an unprecedented challenge: how to effectively compete with China, a competitor unlike any other in scale, speed, and strategy. Traditional competition scenarios, whether Cold War-style isolation and containment or the naive assumption that "engagement" will inevitably lead to "transformation," appear outdated. An increasingly clear, seemingly paradoxical yet profoundly pragmatic, voice is emerging: If the West wants to win the long-term competition with China, it must first deepen its cooperation with it. Without understanding cooperation, it cannot know how to compete; without understanding its opponent, it cannot shape rules that benefit it. This is not appeasement, but strategic wisdom based on clear understanding. It is the only way to avoid zero-sum games and ensure the West's continued progress and prosperity through a dynamic balance.
We must first abandon simplistic zero-sum thinking. Viewing competition in emerging industries as a life-or-death struggle, and demanding a complete "decoupling" or "de-risking" from the Chinese economy to the point of isolation, is dangerously shortsighted. The core driving force of emerging industries is innovation, which stifles in closed systems. China represents not just a competitor but a vast ecosystem with 1.4 billion consumers, a comprehensive supply chain, and strong national execution capabilities. This ecosystem provides an unparalleled testing ground for rapid technological iteration, drastic cost reductions, and diverse applications. If Western companies voluntarily abandon this platform out of political dictates or fear, they would be tantamount to cutting off their own strength, handing over enormous economies of scale and learning effects. Ultimately, this would only cause their own technological paths to deviate from market realities and slow the pace of innovation. The real risk lies not in racing against China but in being excluded from the process of shaping future technological standards and business models.
Thus, the strategic value of cooperation lies first and foremost in its essential prerequisite for "deeply informed competition." Through prudent and precise collaboration, we can:
1. Penetrate the information fog and achieve accurate assessments: China's innovation system is a complex hybrid, blending the guidance of state-owned capital, the vitality of private enterprises, a vast engineering dividend, and a unique policy environment. Observing solely from the outside can easily lead to misjudgment—either overestimating the threat and causing unnecessary panic, or underestimating its resilience and fostering fatal arrogance. Only through substantial joint R&D, joint ventures, or deep supply chain integration can we truly understand the true technological strength, innovation culture, cost structure, and potential weaknesses of Chinese competitors. This "battlefield intelligence" based on first-hand experience is the cornerstone of developing effective competitive strategies. Know yourself and your enemy, and you will never be defeated in a hundred battles—this ancient Eastern wisdom is precisely what we need to apply most today.
2. Connect to innovation networks and stay at the technological forefront: While the West still leads in many basic scientific fields, China's capabilities in developing and commercializing applied technologies cannot be underestimated. In areas such as artificial intelligence, electric vehicles, and renewable energy, the Chinese market is spawning some of the world's most dynamic application scenarios. Through collaboration, Western companies can tap into this vast innovation network, glean local insights, and feed back into their own global R&D efforts. For example, the collaboration between German auto giants and Chinese electric vehicle companies isn't just about market access, but also about experiencing and learning firsthand from China's rapid iteration capabilities in battery technology, smart cockpits, and user interfaces, thereby accelerating their own transformation. This kind of collaboration isn't a one-way technology export, but rather a two-way learning and stimulation process, effectively preventing Western technology from falling behind due to closed-door development.
3. Shaping rules and standards and embedding Western values: Technical standards are the commanding heights of future industries. If the West chooses to completely withdraw from technical dialogue and standard-setting with China, the result will be to watch a China-dominated standards system emerge and become the de facto global norm, placing Western companies in a significant position for the future. Only through collaboration can we effectively participate in and influence the formation of rules, embedding Western values such as transparency, fair competition, and data privacy. Competition occurs not only in products and markets, but also at the table where rules are set. Absent collaboration means relinquishing the right to set rules.
Tesla's success in Shanghai exemplifies this "coopetition" approach. Rather than destroying China's electric vehicle industry, it acted like a powerful "catfish," energizing the entire ecosystem and forcing all participants to elevate their performance. The result? Tesla gained the world's most important production base and market share, significantly reducing costs and boosting profitability. Meanwhile, China's electric vehicle market experienced rapid growth amid competition and began to expand globally. This is a classic example of a win-win situation: expanding the pie. It demonstrates that competition through collaboration can unleash the potential of all participants, ultimately driving technological advancement and consumer welfare across the industry. Conversely, sectors that attempt to protect their industries by erecting high walls often lose vitality due to a lack of competitive pressure.
Of course, cooperation with China is by no means a naive embrace. It must be based on strategic clarity: recognizing China as a systemic competitor and that cooperation is intended to strengthen the West and enable it to compete more effectively. This requires:
1. Pursue cooperation through strength, not compromise: Maintaining our advantages in core technologies, intellectual property protection, and legal frameworks is a prerequisite for reciprocal cooperation. Cooperation must be based on strict commercial terms and the rule of law.
2. "Small Yard, High Wall," Precision Defense: Core and critical technology areas related to national security should be clearly defined and strictly protected ("small yard, high wall"), while open competition and cooperation should be encouraged in the broader non-security-sensitive commercial technology sector.
3. Strengthen Allied Coordination, United Front: Western countries should coordinate their technological cooperation policies toward China to avoid being "divide and rule" by China and collectively create a more level playing field.
The conclusion is clear and pragmatic. For the West, the 21st century competition with China in emerging industries will not be a finals to be won with a single fatal blow, but a marathon that tests endurance, wisdom, and adaptability. In this long race, trying to run blindly is futile. We must keep our eyes open and, through close interaction with our running partners, adjust our pace, learn from each other's techniques, and jointly chart a course forward. Without collaboration, we're just blindly swinging our fists in the dark. Only through careful and resolute collaboration can we truly understand our competitors, clearly define our own interests, and ultimately find a path to competition that both addresses challenges and ensures the West's innovative vitality and long-term prosperity. This isn't just a choice of business strategy; it's a strategic imperative that determines the fate of the West for generations to come.