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China Briefing
This Week in AsiaOpinion
Wang Xiangwei

China Briefing | ZTE row shows China still needs international tech to shine — bravado only fuels Western worries

Beijing is still heavily reliant on imported technologies to make its own high-end achievements possible

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Threats of a trade war with the US have put the future of Chinese smartphone maker ZTE in doubt. Photo: Reuters
The recent US decision to impose a seven-year ban on the sale of American technologies – hardware and software – on China’s second-largest tech company ZTE has inevitably triggered a flurry of reactions and reflections in China.

The move has not only thrown the very survival of the major telecom equipment manufacturer into question and threatened the jobs of tens of thousands of people, but it has also focused popular attention on the hard truth about the fragility and bottlenecks of China’s much-touted technological prowess.

It came as Beijing and Washington were positioning themselves for a potential trade war and followed explicit statements from top US officials that Washington would seek specifically to curb Beijing’s technological advances and thus its overall economic rise.

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Harry Shum, Microsoft executive vice-president of technology and research, demonstrates Microsoft’s HoloLens device to Chinese President Xi Jinping in Redmond, Washington. Photo: Reuters
Harry Shum, Microsoft executive vice-president of technology and research, demonstrates Microsoft’s HoloLens device to Chinese President Xi Jinping in Redmond, Washington. Photo: Reuters

Over the past week, the state media has taken a break from its fiery patriotic tone and displayed a rare reflective mood. It has highlighted how ZTE and other Chinese tech companies have largely relied upon imported American chips – the key components for computers and mobile phones – and reflected on the sore need to develop China’s own core technologies.

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Meanwhile, President Xi Jinping, without directly referring to the US move, has twice emphasised the need for China to devote more resources to developing high-end technology critical to the country’s development, Xinhua reported.

A nasty US-China fight is inevitable. But it needn’t be terminal

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