China looks to speed up chip plans as US trade tensions boil
China’s chip push is at the heart of the trade stand-off with the United States. Beijing wants to boost its tech prowess and escape from its reliance on US products. Washington sees the move as a direct challenge.
China is looking to accelerate plans to develop its domestic semiconductor market amid a fierce trade stand-off with the United States and a US ban on sales to Chinese phone maker ZTE that has underscored the country’s reliance on imported chips.
Senior Chinese officials have held meetings this week with industry bodies, regulators and the country’s powerful chip fund about speeding up already aggressive plans for the sector, two people with direct knowledge of the talks told Reuters.
The talks underscore China’s concern about its reliance on imported chips from global names such as Qualcomm Inc and Intel Corp, aggravated by a worsening dispute with the United States centred on cutting-edged tech.
“In the last few days senior Chinese officials have met to discuss plans to speed up the development of the chip industry,” one person with knowledge of the talks said, asking not to be named because of the sensitivity of the matter.
That goal has been given fresh urgency after a US ban on sales of products – including chips – to Chinese phone maker ZTE Corp roiled the firm, which uses mainly US chips in its smartphones.