HomeWorld News5 big issues from regulation and EVs to semiconductors

5 big issues from regulation and EVs to semiconductors

A technologist inspects a pc chip.

Sefa Ozel | E+ | Getty Photos

GUANGZHOU, China — China’s know-how sector has taken a wild trip over the previous yr, with rules tightened, billions of {dollars} wiped off corporations’ market worth, and a seamless push from Beijing for technological self-sufficiency.

These are among the many essential themes that will likely be addressed at CNBC’s annual East Tech West occasion within the Nansha district of Guangzhou in southern China.

Here is a have a look at the highest considerations and focuses of China’s know-how sector proper now.

China’s tech crackdown

That has weighed closely on China’s web names. For instance, Alibaba’s shares are down 41% year-to-date.

A number of questions are swirling:

  • Will China introduce extra new regulation and in what areas?
  • What corporations could possibly be focused subsequent?
  • What does it imply for progress of the tech sector in China?

CNBC tackled a few of this in a latest episode of the “Past the Valley” podcast under. These conversations will proceed at East Tech West.

Semiconductors

The persevering with know-how rivalry between the U.S. and China has added urgency to Beijing’s push for elevated self-sufficiency throughout quite a lot of sectors. A kind of is semiconductors, that are vital for every little thing from vehicles to cellphones.

However China is struggling to meet up with the U.S. and different nations, and that is due to the complexity of the semiconductor provide chain, which is dominated by overseas corporations.

instance is the sphere of chip manufacturing. SMIC, which is China’s largest contract chip producer, is a number of years behind Taiwan’s TSMC and South Korea’s Samsung. SMIC is definitely unable to fabricate the newest cutting-edge chips required for main smartphones.

Overseas corporations dominate essentially the most superior instruments and gear required for the manufacture of high-end chips. U.S. sanctions have denied China entry to a few of these instruments. Chinese language corporations cannot compete.

How China will increase its home chip trade within the face of these hurdles is a significant, ongoing debate.

‘Frontier’ tech

The semiconductor trade is only one of many industries the place China is making an attempt to spice up its credentials.

In its five-year growth plan, the 14th of its sort, launched earlier this yr, Beijing mentioned it will make “science and know-how self-reliance and self-improvement a strategic pillar for nationwide growth.”

The plan identifies areas which Beijing sees as “frontier know-how” — synthetic intelligence (AI) and area journey.

China has made notable progress in area, together with launching its personal area station. It has ambitions to ship its first crewed mission to Mars in 2033.

With regards to synthetic intelligence, Chinese language know-how giants from Baidu to Tencent are investing closely.

Electrical automobiles

About 1.1 million electrical automobiles had been offered within the first half of this yr, practically as many as had been offered in all of 2020, based on market analysis agency Canalys. China is the world’s largest electrical automobile market.

That progress has attracted a number of new gamers with a know-how background. Xiaomi, which is understood for smartphones, expects to mass produce its personal electrical automobiles within the first half of 2024, whereas search big Baidu has arrange its personal electrical automobile enterprise with Chinese language automaker Geely.

China’s financial slowdown

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