China government don’t want to rely on American tech anymore and is planning proactively for the future
What’s happening: American suppliers are showing concerns about losing China as a key node in global manufacturing and an important export market.
The new Biden administration is not showing very much interest and goodwill in building trust with Chinese, instead it has restated the American commitment to constrain its guiding foreign policy. The tech competition between Chinese and America is gaining pace and will continue to define most of the current international relationships going forward.
Under the influence of the United States’ export complex, American purveyors are concerned about losing China as both a key participant in international manufacturing and a key export market. But in contrast, the Chinese government acknowledges the trend and is immeasurably more proactive in planning for the future.
“Made in China 2025” and the Chinese government’s latest 14th five-year plan both are focused on high-precision industries, especially the semiconductor industry.
China is the largest consumer of semiconductors and has consumed $143.3 billion worth of wafers in 2020, and just about 6% of them were manufactured by the companies headquartered in China. Bottom line: Whilst no one wants to see this breakdown of international trade, comparing these two tech-leading countries, there is still a little doubt that Chinese are better equipped than the United States to extract most out of its tech professionals.