Olaf Scholz: The Challenge of Digitalization and Social Transformation in Germany and China

2019-01-22 IMI

This is a speech draft by Mr. Olaf Scholz on the International Seminar on Digital Economy and Social Development-- The Challenge of Digitalization and Social Transformation in Germany and China. Olaf Scholz, Federal Minister of Finance and Vice-Chancellor of Germany I’m delighted to not only meet my esteemed government colleagues during my visit to China as well as business leaders, but to also get the opportunity to engage with you, dear students – China’s future generation, its young leaders and most promising future minds. Many thanks to Prof. Zhuang, the Dean of the School of Finance of the prestigious Renmin University, for hosting this debate. I was looking very much forward to it! Let me start my short remarks with a little story: In the spring of 2016, an artificial intelligence system called AlphaGo defeated a world champion Go player in a match at a hotel in Seoul. In the US, only a few understood this momentous news. Most Americans were unfamiliar with Go, the ancient Asian game. And the technology that had emerged victorious was even more foreign: a form of AI called machine learning, which uses large data sets to train a computer to recognize patterns and make its own strategic choices. In China, by contrast, 280 million people watched AlphaGo’s win online. There, what really mattered was that a machine owned by a California company, Alphabet, the mother of Google, had conquered a game invented more than 2,500 years ago in Asia. Americans don’t even play Go. And yet they had somehow figured out how to vanquish it? Less than a year later, in May 2017, it was clear to the world, that China would not let the game of AI and machine learning be solely dominated by others: China unveiled its Next Generation AI Development Plan, a document that laid out the country’s strategy to become the global leader in AI by 2030. In doing so, China was one year ahead of Germany. We have presented our Artificial Intelligence Strategy last November. It is also our goal to make Germany and Europe the worldwide leader in the field of AI. Between now and 2025 the German government intends to provide around three billion euros to implement the strategy. Funds will be channeled primarily into research. We are confident that this funding will be matched by equivalent private investment. We will form and network research clusters. Together with France, this network will look at the impacts of artificial intelligence on the working world, and in the field of data protection and data availability. Dear students, Tackling the challenges of the digital era as well as competing for leadership in shaping it is only the next of many chapters in the long-lasting friendship between China and Germany. Today, China is our biggest trading partner worldwide. And Germany is China’s biggest trading partner in Europe. Our economies are closely intertwined. In fact, it goes further than that – the Chinese and German economies now depend on each other. It is precisely this increasing level of interconnectedness that makes differences apparent. I see the digital transformation as a new chapter of our relations within which we can partner up for common goals, learn from each other’s differences and commonly shape the new era that will change not only our economies, but also our societies. We Europeans are working on answers to various questions, many of which are equally relevant for China:

What is the architecture of the future digital economy? In a world, in which our key industries – the automotive sector, the energy and manufacturing industries are under great transformation and stress – what are the industrial pillars on which the future digital economy will stand?

I’m curious to hear the view on this matter of AI-expert and fellow co-panelist, Dr. Zhifei Li.

How can we achieve greater inclusion and less inequality in the future digital economy?

How can an aging society like the German or Chinese provide social welfare in a technologically and economically transformed environment? The stability and social peace of our societies will heavily depend on a smart answer to this question.

How can we get to the forefront of AI and promote data-based business models while protecting the individual privacy of our citizens? How can we guarantee people’s rights to privacy while enabling them to share their data for the public good?
And last, but not least: What is the role of the nation state in digital space? How can we preserve and protect our national sovereignty in the digital age?

The answers to these complex questions will decide on the future strength of our economies and inner peace of our societies. As you know, Germany and the European Union will continue to define and apply the legal framework for citizen related data collection and data use in the future and it will expect everyone who wishes to trade with Europe and its over 500 million citizens to respect this framework. However, I understand that these questions are often answered very differently in China today. Dear students, The world around us is changing. New opportunities are arising and old certainties are now less sure– which makes this new digital era even more challenging. This is precisely why I’m looking forward to hearing your views and ideas! Thank you very much for your attention!

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Olaf Scholz: The Challenge of Digitalization and Social Transformation in Germany and China

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