China continues to be a global force when it comes to the photonics market. In fact, projections suggest China will be the most profitable optoelectronics country in 2024. The EAC International Consulting/Photonics21 Executive Report, “Political Steering Processes in China in Core Segments of the Photonics Industry,” points to the country’s increasing investments in research and development, noting:
The national funds allocated to “Optics & Optoelectronics” by NSFC [The National Natural Science Foundation of China] have steadily increased with a CAGR 2018-2022 of 4%. Another national fund, The Key National R&D Programs, has a total of est. 211M EUR allocated to "Information Photonics Technology" from 2021 to 2023. However, the total value of photonics-related funds under the Key National R&D Programs is expected to increase rapidly, considering implied photonics projects under other programs such as Smart Sensors.
These investments present a conundrum for companies working within our industry, because China is growing as a significant competitor in the global photonics landscape. In a July 24, 2024 press release on the new study, Photonics21 President Dr. Lutz Aschke called on the European Union to step up its investment in photonics or risk falling behind. He said: “Policymakers must take heed China’s market and technological leadership. China is penetrating sectors traditionally dominated by Europe, such as laser manufacturing, sensing, optical components and systems. Basic research and enabler processes need to be strengthened and matched by investments in future markets such as artificial intelligence (AI). We have to take timely measures.”
Overall, companies need to weigh where they fall on the spectrum and formulate firm positions on doing business with China. These policies will provide a lens from which to assess possible projects and help them to evaluate the potential benefits and pitfalls of engagement more logically.
Forums for dialogue
For companies to get to that place, they need to operate from a firmer foundational footing and have a true understanding of China’s influence on the photonics industry. They need to hear from leaders to learn more about the potential impact of the country’s growing dominance. At Optica, we want to further explore this topic in global forums that enable deeper knowledge to provide our Optica corporate members with tools for their strategic decisions.
For instance, the 25th China International Optoelectronic Exposition (CIOE) provides an opportunity to understand the Chinese landscape. The event, which is recognized as China's premier and most extensive optoelectronics forum, will be held from September 11-13, 2024, at the Shenzhen World Exhibition and Convention Center. The exposition will feature more than 3,700 exhibitors from more than 30 countries and regions, showcasing the latest advancements in sectors such as information and communication, precision optics, laser and intelligent manufacturing, infrared, intelligent sensing, and display technologies. (For more information or to register, visit the CIOE 2024 Official Website.)
We also are facilitating a discussion of China's evolving role within the global photonics industry at Optica’s Global Photonics Economics Forum 2024, which will take place October 1-2, in Málaga, Spain. Moderator Bardia Pezeshki, CEO of Avicena Tech, will convene a panel of industry experts to provide perspectives on how to address the country’s evolving impact. Speakers include Huiyao Wang, founder and president of CCG; Michael Hochberg, CEO of Periplous; and Rodger Baker, executive director of Stratfor Center for Applied Geopolitics. The discussion will offer varying perspectives on ways the global community can move forward. (For more information or to register, visit the Global Photonics Economics Forum website.)
As the photonics industry continues to evolve, there’s no doubt that China will play a role in its future. Every organization needs to consider how that fact will impact their operation, and participating in industry discussions will help you determine the right course to address both the challenge and the opportunity.