Policy and technology are changing competitive dynamics across several parts of the global economy. China is expanding its research and technology base, US tariffs have disrupted the gold market and artificial intelligence is changing the US graduate labour market.
China has made a sustained investment in higher education and research. Between 2016 and 2025, the number of Chinese institutions in the QS World University Rankings more than doubled from 30 to 72. China also placed two universities in the global top 15 for the first time.
The expansion is increasing the supply of technical expertise. In 2022, China awarded more than 50,000 STEM PhDs, more than twice the number awarded in 2007 and ahead of the nearly 34,000 awarded in the US.
That talent is supporting development in areas including artificial intelligence, advanced materials, semiconductors and clean technology. China also leads the world in annual patent applications.
The significance extends beyond research output. Beijing has strengthened links between universities, laboratories and industry, helping companies move technologies from research into commercial production. While not every patent represents a major breakthrough, the combination of technical talent, industrial capacity and government support can accelerate the commercialisation of new technologies.
This creates potential competitive pressure in industries where technology, manufacturing scale and cost are important. China is seeking to develop competing technologies, often with an emphasis on lower costs.
The gold market shows how policy can also create unexpected market incentives.
US tariff threats during 2025 contributed to a widening gap between gold prices in London and New York. At its peak in early August, gold was worth more than $90 an ounce more in Manhattan than in London’s Square Mile.
The price difference created an arbitrage opportunity. Banks could buy physical gold in London and sell it in New York at a higher price. Taking advantage of the gap required specialist transportation, insurance and security, with some gold passing through Switzerland to be melted down and recast for US vaults.
Major financial institutions moved bullion across the Atlantic, including through commercial passenger aircraft. As more supply reached New York, the price difference narrowed.
The episode demonstrates how quickly market participants can respond when policy changes the economics of an asset. Rather than simply restricting supply, tariffs changed the location and form of gold flows and created additional market volatility.
Artificial intelligence is producing another structural change, this time in employment.
The traditional link between university education and professional employment is becoming less straightforward for recent US graduates. By mid-2025, unemployment among graduates aged 22 to 27 stood at 4.8%, compared with 4.0% for the wider population and 2.7% for college graduates of all ages.
Highly qualified graduates are also facing a more competitive market. At Harvard Business School, 23% of the class of 2025 was still seeking work three months after graduation, compared with 20% the previous year.
Generative AI may be contributing to this shift. Entry-level corporate job listings have fallen while applications per role have increased. Employers are also placing greater emphasis on AI skills.
The impact is particularly relevant in areas such as finance and computer science, where AI can increasingly perform tasks previously assigned to junior employees. As automation takes over routine work, companies may need to rethink how they recruit and develop early-career talent.
Across all three examples, the underlying theme is adaptation. Research investment is changing China’s competitive position, tariffs are altering the economics of physical gold and AI is changing the structure of professional employment. For businesses, the key consideration is how quickly these changes alter costs, competition and the way markets operate.
Ruffer Investment Company Limited (LON:RICA) is a British investment company dedicated to investments in internationally listed or quoted equities or equity related securities
