Washington’s October update to its export control regime greatly expanded restrictions on China’s access to advanced semiconductors and chip-making equipment. In response, Beijing has moved quickly to try to boost the ratio of domestic chips used in home appliances, vehicles and industrial devices.
Xi’s exchange with Shan was widely picked up by state media as a strong signal from the Chinese leader regarding the country’s continued emphasis on shifting to domestically made technology.
Xi has emphasised technological self-reliance repeatedly during China’s “two sessions”, the annual parliamentary meetings of the NPC and the Chinese People’s Political Consultative Conference, according to comments published by state media outlets. On Monday, Xi levelled a rare targeted accusation against the US, saying it was leading other Western nations in “all-round containment and suppression of China”.
Xi was also quoted by People’s Daily as saying China must ensure its food and manufacturing independence.
The website of the Central Commission for Discipline Inspection, China’s top anti-graft agency, mentioned XCMG’s progress in domestic sourcing and Xi’s remarks about “high-quality” development being “the primary task of comprehensively building a modern socialist country”.
China’s “whole-nation” approach to developing the local semiconductor industry and cutting reliance on imported devices has continued with Beijing’s blessing. Vice-Premier Liu He said at a symposium last week that China will continue to boost the local chip industry by leveraging both state and market power for growth.