China bracing for US tech war with plan to cut reliance on imports of key components to just 25 per cent
- Beijing downplayed its ‘Made in China 2025’ plan under pressure from the US, but is now aiming to rely on domestic production for 75 per cent of its key components
- Former minister Li Yizhon also said that China is planning to create 40 ‘national manufacturing innovation centers’ by 2025
China is aiming to increase its reliance on domestic production for key components, including chips and controlling systems, to 75 per cent by 2025, according to a former minister.
The target reflects Beijing’s determination to reduce its dependence on imports by expanding its national manufacturing innovation centres to 40 from the 15 at the end of 2019.
Domestic production can currently only provide around a third of the key components required by China, but Li Yizhong, the former industry and information technology minister, said this week that the level would be lifted to 40 per cent by 2020 and 75 per cent by 2025.
The move, which includes a series of plans to improve weak links in the areas of hi-tech research and crucial component development “one by one”, is seen as part of China’s preparation for a intensifying technology war with the United States.
China spent about US$320 billion to import integrated circuit products in 2018, which was more than the US$240 billion on crude oil imports that year
“One problem now is that China lacks 80 kinds of core parts and components. In addition, China still lacks 20 key technical materials and 30 advanced technology processes,” said Li, who is now the head of the China Society of Industrial Economics, a government-affiliated organisation, according to Sina.com.