Xi Jinping says China must quicken pace of tech self-reliance to prevent being ‘strangled by foreign countries’
- China
should strive to become a global leader in scientific and technological
fields, President Xi Jinping tells Politburo group study
- Xi
says the nation must accelerate the construction of a ‘new development
pattern’ or it risks being contained by foreign countries
Frank Tang
in Beijing
China is going all out to revive its coronavirus-battered economy, but overseas headwinds, including a potential recession in key export markets and Washington’s intensified endeavours to contain China’s technological advancement, have cast a long shadow over recovery.
2 Feb, 2023
President Xi Jinping has said China must accelerate efforts to achieve self-reliance in science and technology to cement its footing in the global supply chain and counter US decoupling efforts. “We must quicken the pace of tech self-reliance to prevent being strangled by foreign countries,” he said at Tuesday’s Politburo group study.
“China
should strive to become a global leader in important scientific and
technological fields, a pioneer in cutting-edge interdisciplinary areas,
and a major scientific centre and innovation hub for the world.”Xi’s
comments highlight the sense of urgency in Beijing amid heightened
decoupling efforts by the United States – most notably on the
technological front – which could threaten the Communist Party’s
decades-old development path.
Beijing has long wanted to shift the focus of economic growth to the domestic market and home-grown technologies, but deteriorating relations with the West have propelled self-reliance to the top of the policy agenda. “Only by accelerating the construction of a new development pattern can we consolidate the foundation of our economic development, enhance security and stability, and improve our viability, competitiveness, development power and sustainability in foreseeable and unpredictable storms,” Xi said.
Beijing has long wanted to shift the focus of economic growth to the domestic market and home-grown technologies, but deteriorating relations with the West have propelled self-reliance to the top of the policy agenda. “Only by accelerating the construction of a new development pattern can we consolidate the foundation of our economic development, enhance security and stability, and improve our viability, competitiveness, development power and sustainability in foreseeable and unpredictable storms,” Xi said.
China is going all out to revive its coronavirus-battered economy, but overseas headwinds, including a potential recession in key export markets and Washington’s intensified endeavours to contain China’s technological advancement, have cast a long shadow over recovery.
China’s economy grew by only 3 per cent last year, the second lowest growth figure in more than four decades.
As part of its latest assault against China’s technology sector, Washington has reportedly struck an agreement with the Netherlands and Japan to restrict exports of some advanced chip-making machinery to China.The Biden administration appears determined to decouple from China in core technologies, such as semiconductor chips and artificial intelligence, and its alliance strategy makes it hard for China to gain necessary technologies or products from the third parties, Peking University’s institute of international and strategic studies said in a report released earlier this week.
“Both China and the United States are facing losses of decoupling in either technology or industry. At present, China’s losses may be even greater,” it said. Zhu Bin, an analyst with Huafu Securities, said Xi’s mention of viability suggested the challenges facing China could be life or death.
“Domestic substitution would be a key goal for China’s tech sector amid the US rivalry,” he said.
As part of its latest assault against China’s technology sector, Washington has reportedly struck an agreement with the Netherlands and Japan to restrict exports of some advanced chip-making machinery to China.The Biden administration appears determined to decouple from China in core technologies, such as semiconductor chips and artificial intelligence, and its alliance strategy makes it hard for China to gain necessary technologies or products from the third parties, Peking University’s institute of international and strategic studies said in a report released earlier this week.
“Both China and the United States are facing losses of decoupling in either technology or industry. At present, China’s losses may be even greater,” it said. Zhu Bin, an analyst with Huafu Securities, said Xi’s mention of viability suggested the challenges facing China could be life or death.
“Domestic substitution would be a key goal for China’s tech sector amid the US rivalry,” he said.
Tuesday’s
group study, which was attended by the country’s 24 most powerful
politicians, was only the second gathering since the party’s new leaders
were selected in late October. The party bosses of Beijing, Shanghai
and Guangdong, as well as He Lifeng, who is set to be a vice-premier in
charge of finance, spoke at the close-door meeting, but no details of
their comments were provided.
While considering a long-term way to boost household consumption, government emphasis will be on investment in new infrastructure, hi-tech industries and strategic emerging sectors, Xi said. China will also double down on efforts to create a good environment for businesses, leverage private investment, promote market-oriented reform of production factors and accelerate the building of a unified national market, according to a report from the state-owned Xinhua News Agency.
“The precise boost of domestic demand will be good to prevent financial risks,” said Zhu of Huafu Securities. The Chinese government is due to release its 2023 targets for economic growth, fiscal deficit and research and development expenditure at March’s annual parliamentary session.
While considering a long-term way to boost household consumption, government emphasis will be on investment in new infrastructure, hi-tech industries and strategic emerging sectors, Xi said. China will also double down on efforts to create a good environment for businesses, leverage private investment, promote market-oriented reform of production factors and accelerate the building of a unified national market, according to a report from the state-owned Xinhua News Agency.
“The precise boost of domestic demand will be good to prevent financial risks,” said Zhu of Huafu Securities. The Chinese government is due to release its 2023 targets for economic growth, fiscal deficit and research and development expenditure at March’s annual parliamentary session.