The Chinese mainland technology sector is charting a new course amid evolving U.S. tariffs. On Thursday, U.S. President Donald Trump announced a policy of reciprocal tariffs, including a 34 percent levy on imports from China. Although the semiconductor industry was excluded from this latest list, earlier measures already set the stage for 50 percent tariffs on Chinese semiconductors effective January 2025.
Amid these trade challenges, Chinese technology firms are demonstrating remarkable resilience. By leveraging self-developed systems and expanding global supply chains, the sector achieved significant milestones in 2024. Data from China’s General Administration of Customs shows chip exports reached 298.11 billion units with a total export value of $159.5 billion—a robust 18.7 percent year-on-year increase.
Further strengthening its global trade infrastructure, the Ministry of Commerce reported the establishment of over 2,500 overseas warehouses covering more than 30 million square meters as of May 2024. Meanwhile, long-term investments in fundamental research have borne fruit, with spending on basic research rising to 8.3 percent of total R&D investment.
However, experts warn that the new U.S. tariffs could destabilize domestic industries and ripple through the global economy. An analysis by the Zhejiang Institute of Industry and Information Technology recommends a phased approach towards technological self-sufficiency. In the semiconductor sector, it advises focusing on developing an independent supply chain for mature 28-nanometer processes, complemented by innovations such as advanced chiplet packaging technology. The report cautions against a complete isolation strategy, instead advocating for open-source innovation to tap into global intellectual resources.
This dynamic interplay of challenges and innovation not only highlights the strategic evolution of Chinese technology but also resonates with global citizens, entrepreneurs, tech enthusiasts, and thought leaders seeking fresh perspectives on international economic trends.
Reference(s):
cgtn.com
