A technologist inspects a computer chip.
Sefa Ozel | E + | Getty Images
GUANGZHOU, China – China’s tech sector has been on a wild ride over the past year, with regulations tightened, billions of dollars devastating corporate market value, and ongoing pressures on Beijing to become self-sufficient in technology.
These are some of the important topics to consider. be treated CNBC’s annual East Tech West event in the Nansha district of Guangzhou in southern China.
Here’s a look at the top concerns and priorities of the Chinese tech sector right now.
That put a heavy strain on China’s internet name. For example, Alibaba’s shares are down 41% since the start of the year.
There are several questions:
- Will China introduce more new regulations and in what areas?
- Which companies could be targeted next?
- What does this mean for the growth of the technology sector in China?
CNBC addressed some of this in a recent episode of the Beyond the Valley podcast below. These talks will continue at East Tech West.
The ongoing tech rivalry between the US and China has made Beijing’s efforts to become more self-sufficient in a variety of sectors even more urgent. One of them are semiconductors, which are vital for everything from automobiles to cell phones.
But China is struggling to catch up with the US and other countries, and that’s because of the complexity of the semiconductor supply chain, which is dominated by foreign companies.
A good example is the chip manufacturing sector. SMIC, China’s largest contract chip maker, is several years back Taiwan’s TSMC and South Korea’s Samsung. SMIC is unable to manufacture the latest chips needed for leading smartphones.
Foreign companies master the most advanced tools and equipment required for the production of high-end chips. US sanctions have denied China access to some of these tools. Chinese companies can’t keep up.
How China will boost its domestic chip industry in the face of these hurdles is a big and ongoing debate.
Read more about semiconductors
The semiconductor industry is just one of many industries in which China is trying to improve its credentials.
In his Five-year development plan, the 14th of its kindBeijing, which was released earlier this year, said it would “make science and technology self-reliance and self-improvement a strategic pillar for national development.”
The plan identifies areas that Beijing sees as “frontier technology” – artificial intelligence (AI) and space travel.
When it comes to artificial intelligence, Chinese tech giants from Baidu to Tencent are investing heavily.
According to market research company Canalys, around 1.1 million electric vehicles were sold in the first half of the year, almost as many as in all of 2020. China is the world’s largest market for electric vehicles.
This growth has attracted many new tech players. Xiaomi, which is known for smartphones, is expecting it Series production of our own electric vehicles in the first half of 2024while the search giant has Baidu Set up your own electric car business with the Chinese automaker Geely.