-October 2013, St. Petersburg-
The Russian Federal Security Service (FSB) held an unusual press conference, an uncommon move for the secretive agency. Before the cameras, Russian intelligence officials showcased what appeared to be ordinary household appliances, such as irons and kettles, bearing the logo of the French cookware manufacturer "Tefal." However, upon closer inspection, subtle discrepancies in the logo were detected.
FSB officials proceeded to dismantle the appliances, revealing hidden microphones and wireless internet connectivity. Once plugged in, these devices automatically connected to local Wi-Fi networks and functioned as remote espionage tools, transmitting intercepted data directly to China.
Following last week's groundbreaking developments with China's DeepSeek AI model, we take a deeper look at China's master plan to ascend as the world's foremost superpower through technology and artificial intelligence, the deep-seated national humiliation that fuels this ambition, and the staggering economic milestones it has already reached.
4,000 years of civilization
China is the world's oldest continuous civilization, boasting a history spanning between 3,500 and 4,000 years. As the cradle of East Asian culture, China historically viewed itself as the strongest and most advanced nation on Earth. The country's name in Chinese translates to "the Middle Kingdom," reflecting its traditional self-perception as the world's central power.
A famous quote by Israeli leader Yigal Allon states, "A people who do not know their past have a meager present and an uncertain future." The Chinese embrace this philosophy wholeheartedly. They regard their history as the most influential and pivotal force in human progress, believing that membership in the Chinese nation is the pinnacle of human experience.
Their confidence is not without merit. China's contributions to human civilization are vast, including some of history's most transformative inventions: paper, printing, the compass, and gunpowder. It is home to the Great Wall, the largest structure ever built, and Sun Tzu's The Art of War, considered the strategic bible of warfare.
Then came the 19th century.
Humiliated, weakened, and ravaged by drugs
In 1839, Western powers, chief among them Britain, France, and Japan, sought to trade opium with Chinese merchants. The Chinese government opposed the trade, sparking conflict. The British Navy, leveraging its technological superiority, attacked Chinese port cities, delivering a crushing defeat. China was subsequently forced to sign a humiliating treaty, granting foreign powers significant control over its territory and trade, including ceding Hong Kong and several islands to British rule.
These conflicts, later known as the Opium Wars, did not end there. A few years later, British and French forces invaded China again, capturing Beijing, burning down the imperial palace, and imposing yet another surrender treaty.
By the end of the 19th century (1894–1895), China suffered another devastating blow in the First Sino-Japanese War, losing Taiwan to Japan. In 1911, the Qing Dynasty, the last imperial dynasty, collapsed - throwing China into political chaos and further diminishing its power. In 1937, the Second Sino-Japanese War erupted. Japan brutally overpowered China, killing an estimated 18 million Chinese, mostly civilians, while committing acts of unimaginable cruelty.
By the end of World War II in 1945, China emerged from a century of humiliation, weakened, bloodied, and anxious. As the world moved forward, China stepped back. While global powers embraced modernization, China stagnated, allowing the very European nations it once regarded as inferior barbarians to dominate it. While China played a minimal role in the first three waves of the Industrial Revolution, it was determined to lead in the fourth, the era of the Smart Industry.
"The greatest economic achievement in human history"
Before discussing China's technological advancements, one must first recognize its remarkable industrial and economic revolution.
Amidst its "century of humiliation," a civil war broke out in 1927 between Chinese nationalists and communists, led by Mao Zedong. The conflict was temporarily paused during the Sino-Japanese War but resumed afterward, ultimately culminating in a communist victory and the establishment of the People's Republic of China under Mao, one of history's most destructive rulers.
Mao's most infamous policy was the "Great Leap Forward" in the late 1950s, a disastrous economic reform that resulted in mass starvation, killing tens of millions. However, in the 1980s, Chinese leadership realized that a strong nation could not be built on an impoverished agrarian society. As a result, they began liberalizing markets, strengthening the industrial sector, and setting the stage for an economic revolution. China's real turning point came in 2001 when it joined the World Trade Organization (WTO).
By opening its markets to global trade, China became the world's manufacturing hub, earning the title "the world's factory." The results were extraordinary: nearly eradicating famine and extreme poverty. Before its WTO accession, nearly half of China's population lived under the United Nations' definition of extreme poverty. However, according to economist Eran Nissan in The Next 100 Years of War (Matar Publishing), which examines the intensifying US-China rivalry, that number plummeted over the following decades.
In 2019, the Chinese government reported that only 5.5 million people, 0.4% of its officially recognized 1.4 billion citizens, remained in extreme poverty. Nissan describes China's fight against poverty as "perhaps the greatest economic achievement in human history."
The Chinese Dream
A well-known cliché in the intelligence world states that "every country spies on every other country." Does this explain why China allegedly planted espionage devices in Russian appliances?
When people think of espionage, especially between nations, they typically envision security, diplomacy, and intelligence operations. However, reports suggest that China's use of these electronic devices was primarily for industrial espionage. A report by the US National Counterintelligence and Security Center concluded that "China is the world's most active player in economic espionage." For years, the global industrial sector has been aware of China's theft of sensitive economic data to develop low-cost replicas of Western products.
In The Hundred-Year Marathon, Michael Pillsbury (Sela Meir Publishing, translated by Yemima Avron and Elhanan Speiser) writes: "China's expansion into international markets follows one undeniable rule: It does not play by the rules." Indeed, China has long been seen as a nation that copies Western innovations and produces them cheaply. While it was once known for its ability to implement existing technology efficiently, China now leads the world in cutting-edge research and development.
China learned firsthand the price of technological inferiority when it was bombarded by British cannons in the 19th century. Today, "the ambition of China's leaders, led by Xi Jinping, dictates that China will not rest until it becomes the world's top innovator," writes Nissan in The Next 100 Years of War.
Shortly after Xi Jinping was appointed General Secretary of the Communist Party (before becoming president), he delivered a speech outlining his vision for China. "Zhōngguó Mèng," he declared, the "Dream of a Strong Nation.", known as the Chinese Dream. In an interview with The Wall Street Journal, he identified 2049, the centennial of the Communist Party's founding, as the year when this dream will be fully realized.
Former US Secretary of State Henry Kissinger famously said, "Who controls money control the world." By 2040, China is projected to surpass the US as the world's largest economy. According to the purchasing power parity (PPP) metric, it already did so in 2014. "No serious financial institution still believes that China's economy will remain smaller than America's for much longer," writes Pillsbury.
A decade ago, China launched the Made in China 2025 initiative, aimed at positioning the country as a global leader in technological innovation by 2025. Last week, the world discovered that China had not only met its goal, but exceeded it. By 2030, it expects to lead the global technology sector outright.
How did China bridge the technological gap with the US so rapidly? How is it advancing AI with minimal investment? And what is the extent of China's influence on Israel? These questions will be explored in the next installment of our series on the great power struggle.
