Sino-U.S. trade tensions have strengthened China’s resolve to independently develop its semiconductor industry.
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Industry News
Release date:
2024-01-04
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• Since 2018, anti-globalization has intensified, with the United States proactively initiating trade tensions against China. The ZTE incident, among others, has highlighted China’s shortcomings in critical technological fields.
• The United States’ restrictions on the export of critical components to China’s leading technology firms have dealt a severe blow to domestic tech companies, with ZTE even experiencing a temporary halt in production. In May this year, the U.S. once again added China’s Huawei to its Entity List, sparking widespread controversy. On June 17, Huawei founder Ren Zhengfei told Forbes that he expects the company to cut production over the next two years, resulting in a $30 billion decline in revenue. For Huawei, which boasts strong independent R&D capabilities, these U.S. restrictions have also had a significant impact.
• In the foreseeable future, Sino‑U.S. trade tensions are likely to remain characterized by recurring rounds of escalation and de‑escalation. Meanwhile, domestically, a top‑down approach—spanning government agencies and enterprises—has firmly set the course for developing core technologies, with semiconductors emerging as the highest priority.
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