AFL CIO Invests $280 Million in Tech Companies to Compete With China

China has been investing in high-tech industries and artificial intelligence (AI) for some time as part of its Made in China 2025 plan.

The country has also been targeting US innovation hubs to deepen its talent and research pool. So with all this happening, why does it matter that the AFL-CIO and the Third Way think tank has just announced that the AFL-CIO’s investment arm—the AFL-CIO Innovation and Collaboration Fund (AICF)—has just invested $280 million in 23 technology companies? There are three reasons why this announcement is important, and one reason it’s not as big a deal as it might seem at first glance.

China is already investing a lot in AI and high-tech manufacturing.

There’s been a lot of talk during the past couple of years about China’s investment in artificial intelligence, but the reality is that it’s already happening. Chinese corporations and government agencies have invested in AI research in partnership with leading US and elsewhere AI firms for several years. At the same time, China has been pouring money into robotics research and development to become the world leader in robotics technology. The country has set its sights on becoming the world’s top robotics manufacturer by 2020. It’s not just that China is investing a lot in robotics and AI. China’s strategy is to co-locate robotics and AI research and development with manufacturers to create a vertically integrated and self-sustaining robotics and AI industrial base. China plans to develop independent high-tech manufacturing hubs, while the US strategy is to create innovation hubs to foster new technologies and inventive thinking. China’s strategy is developing high-tech clusters, while the US invests in individual companies. China plans to develop autonomous high-tech manufacturing hubs, while the US strategy is to create innovation hubs to foster new technologies and inventive thinking.

AI and robotics are the future of manufacturing

The logic behind China’s investment in robotics and AI is that the industry is the future of manufacturing. If you’re building a new car or truck, you’ll use robotics and AI software to design and manufacture that vehicle. If you’re producing a new jetliner, you’ll use robotics and AI to design and build that airliner. The same holds for other industries, such as energy and agriculture. China’s strategy is to use robotics and AI to create an entirely new type of manufacturing, one that’s based not on human labor but instead on machine intelligence. The US has been behind in robotics and AI, and China has been pressing ahead aggressively to gain a lead in these technologies. To lead in robotics and AI, you need a lot of research and development, plus a large, high-quality workforce. With its Made in China 2025 plan, China has been targeting the US, trying to poach top talent and research scientists from American universities and technology startups. China’s investment in robotics and AI has already created self-sustaining clusters of high-tech manufacturing.

The US will benefit from China’s investment in high tech—and so will we.

China’s investment in robotics and AI is not going to be a one-way street. The US is going to benefit from China’s investment in high tech, and China will benefit from US investment in the same industries. When China invests in AI, it’s not just trying to create a homegrown industry. It wants to be a world leader in AI, and it wants to sell its AI software and services around the world. The same is true for robotics. When China invests in robotics and AI, it creates self-sustaining clusters of high-tech manufacturing in the country. Those clusters will have to sell their products and services globally. The US has been lagging in high tech, but now it can catch up. The AFL-CIO’s investment of $280 million in 23 technology companies is a small down payment on catching up to China in AI and robotics.

This isn’t a game-changer, but it’s still essential.

The AFL-CIO’s investment in high tech is a small down payment on catching up to China in AI and robotics. It’s essential as a symbol and a signal. It’s important as a sign that US unions are changing and realizing that they can’t just be old-school industrial unions anymore. It’s important because it’s a sign of things to come. As China increases its investment in high tech and the US catches up, the two countries will compete fiercely for AI researchers, robotics engineers and software developers, and other high-tech workers. This competition will not be limited to Chinese and American workers. It will be global, with other Asian countries, Europe, and Latin America also trying to poach top talent from the US and China. The AFL-CIO’s investment of $280 million in high tech is not a game-changer, but it’s still important as a sign of coming things.

Conclusion

China has invested in high-tech industries and artificial intelligence for some time as part of its Made in China 2025 plan. The country has also been targeting US innovation hubs to deepen its talent and research pool. With all this happening, why does it matter that the AFL-CIO and the Third Way think tank has just announced the AFL-CIO’s investment arm—the AFL-CIO Innovation and Collaboration Fund (AICF)—has just invested $280 million in 23 technology companies? There are three reasons why this announcement is important, and one reason it’s not as big a deal as it might seem at first glance. First, China’s investment in high tech is accurate, and the US needs to catch up to be competitive. Now is the time for the US to invest in AI and robotics, create self-sustaining high-tech manufacturing hubs, and compete with China.