China now has over 45,000 registered businesses relating to chip design, testing, development and manufacturing, and newly registered businesses in the chip industry have grown 200 per cent in the second quarter of 2020 alone compared to a year earlier. Photo: Reuters China now has over 45,000 registered businesses relating to chip design, testing, development and manufacturing, and newly registered businesses in the chip industry have grown 200 per cent in the second quarter of 2020 alone compared to a year earlier. Photo: Reuters
China now has over 45,000 registered businesses relating to chip design, testing, development and manufacturing, and newly registered businesses in the chip industry have grown 200 per cent in the second quarter of 2020 alone compared to a year earlier. Photo: Reuters
Zhou Xin
Opinion

Opinion

Zhou Xin

China’s push to boost local chip industry could backfire by creating excess capacity

  • China is trying to be self-sufficient as it prepares for a long-term economic, technological and geopolitical rivalry with the United States
  • But a similar plan adopted a decade ago to grow seven key industries, including electrical vehicles, was not entirely successful

China now has over 45,000 registered businesses relating to chip design, testing, development and manufacturing, and newly registered businesses in the chip industry have grown 200 per cent in the second quarter of 2020 alone compared to a year earlier. Photo: Reuters China now has over 45,000 registered businesses relating to chip design, testing, development and manufacturing, and newly registered businesses in the chip industry have grown 200 per cent in the second quarter of 2020 alone compared to a year earlier. Photo: Reuters
China now has over 45,000 registered businesses relating to chip design, testing, development and manufacturing, and newly registered businesses in the chip industry have grown 200 per cent in the second quarter of 2020 alone compared to a year earlier. Photo: Reuters
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Zhou Xin

Zhou Xin

Zhou Xin co-leads the political economy team at the Post. He mainly covers economic stories but also writes about Chinese politics and diplomacy. He has previously worked for Reuters and Bloomberg in Beijing.