US-China tech war: Silicon Valley faces ‘difficult battle’ as Beijing ramps up tech spending
- China’s Finance Ministry said early in March that spending on science and technology totalled about US$51 billion last year
- But its recent crackdown on the internet sector may threaten progress towards overtaking Silicon Valley, some analysts say
Growing state financial support for hi-tech industries, backed by long-term development targets and a huge pool of engineers, could give China an edge over Silicon Valley within the decade, analysts say.
Beijing has its sights set on establishing a world-leading tech industry to boost economic self-reliance and make the country more resilient to external pressure amid heightened rivalry with the United States.
US CIA director William Burns has described technology as the “main arena for competition and rivalry with China” – and the world’s No 2 economy is already the biggest hi-tech manufacturer.
“The tech industry in the US knows the US government cannot and will not spend enough to push it forward,” said Jeff Fieldhack, US-based research director for mobile devices with market analysis firm Counterpoint Research.
China’s Finance Ministry said early this month that spending on science and technology totalled about US$51 billion last year.