Opinion | Why Beijing’s new tech master plan will make it more dependent on the US, not less
- Many of the companies Beijing needs for its US$1.4 trillion tech infrastructure plan were put on Washington’s trade blacklist last October
- The new rule requires all foreign semiconductor companies using US origin technology to obtain a waiver to do business with Huawei
The programme, slated for approval by the National People’s Congress meeting in Beijing this month, is the linchpin of Chinese President Xi Jinping’s goal of making the country less dependent on foreign technology.
Trouble is, there’s a fatal flaw. Unless the money is spent developing something to replace silicon-based semiconductors, it will see China’s tech industry become more dependent on the US, not less.
To see why, look no further than the ongoing campaign by Washington to blunt the rise of Chinese telecoms champion Huawei Technologies, which the US considers a national security threat.
05:11
Huawei founder shares his relationship with family and his personality
Last week Washington closed a loophole used by Huawei to skirt a ban on its use of US technology, including semiconductors and software, after it was put on the so-called Entity List in May last year. The new rule introduced last week requires all foreign semiconductor companies using US origin technology to obtain a waiver to do business with Huawei.
