China is intensifying its efforts to achieve technological self-reliance, placing science and technology at the forefront of its economic development strategy. Amid ongoing U.S. sanctions targeting advanced technologies, the Chinese mainland is responding by bolstering innovation and investing heavily in its semiconductor industry.
The 20th CPC National Congress underscored the significance of science and technology, declaring them as the primary productive force and innovation as the primary driver of growth. This strategic emphasis reflects China’s commitment to transitioning towards high-quality economic development through advancements in education, strategic planning, and workforce development.
U.S. sanctions have posed significant challenges to China’s tech sector, particularly in areas deemed “dual-use” technologies such as advanced microchips and supercomputers. Restrictions on U.S.-origin components and technology have impeded China’s ability to produce state-of-the-art semiconductor manufacturing equipment, hindering its progress in the global tech arena.
In response, China is launching a new state-backed investment fund aiming to raise over $40 billion for its semiconductor sector, according to Reuters. This initiative, spearheaded by the China Integrated Circuit Industry Investment Fund, represents the largest of its kind, surpassing previous funds initiated in 2014 and 2019. Learning from past experiences, authorities are addressing issues of waste and corruption to ensure effective allocation of resources.
President Xi Jinping has long advocated for “indigenous innovation,” emphasizing the necessity for China to develop its own technological capabilities. Premier Li Qiang has reinforced this vision by highlighting the crucial role of specialized, high-end, innovation-driven enterprises in securing high-quality economic growth and stabilizing industrial and supply chains.
During a recent symposium following visits to three “little giants”—small to medium-sized high-tech companies in strategically significant sectors—Premier Li underscored that “innovation serves as the soul” of these enterprises. He called for more targeted and effective policies, including financial support, preferential taxation, intellectual property protection, and talent training to foster an environment conducive to innovation.
Li’s high-profile visits to leading tech companies such as Huawei and BYD send a clear message about the government’s commitment to technological advancement and self-sufficiency. These visits signal to officials at all levels the priority placed on sci-tech development as a means to navigate external pressures and drive economic growth.
China’s push for technological self-reliance is not a new endeavor. Premier Li, during his tenure as governor of Zhejiang Province in 2016, emphasized the importance of innovation and entrepreneurship as key to industrial transformation. This long-standing focus reflects a strategic approach to positioning China as a global leader in technology and innovation.
As China navigates the challenges posed by external sanctions, its intensified focus on science and technology is set to play a pivotal role in shaping its economic future. By fostering innovation and investing in critical industries, China aims to strengthen its position on the global stage and achieve sustainable, high-quality development.
Reference(s):
cgtn.com
