Analysis | China pivots to state-corporate partnerships in drive for technology self-reliance
- Home-grown innovation has been identified as a ‘strategic pillar’ in the next five-year plan and companies are expected to step up
- Innovation consortiums will be established between private companies and scientific and technology institutions to drive research
As Beijing doubles down in its contest with the US for technological leadership, it is looking to Chinese industrial champions to drive the country’s innovation programme – and even basic research in science and technology – once dominated by the state sector.
Self-reliance in critical sciences and technological innovation was identified as a “strategic pillar” of the country’s development strategy for the next five years, against a backdrop of huge import costs for semiconductors – at US$306 billion last year – almost as much as China’s total R&D spend of US$319 billion.
According to Chinese customs and National Bureau of Statistics (NBS) data, chip imports amounted to 2.2 per cent of GDP in 2019 and the China Semiconductor Industry Association is forecasting they will remain at over US$300 billion this year.
Semiconductors – along with other cutting-edge fields like artificial intelligence and quantum computing – were also added to the list of key strategies warranting state-sponsored research in the 2021-25 plan.
In addition to emphasising self-reliance, the new plan calls for an overhaul of the way China conducts its R&D, from primary research to application and development, with an emphasis on the private sector.
