Experts and representatives from leading Chinese manufacturers called for the development of vital technologies such as chips and robots for China’s “root economy” at a gathering on Sunday, reaffirming the vital role technologies play in China’s economy, especially amid a high-tech blockade from the US government.
At the 6th China Manufacturing Day on Sunday, they acknowledged that certain advanced technologies are still a weak spot in China’s transition from low-end manufacturing to one of high-end values, but they expressed confidence that China will continue to advance, given the country’s huge market potential and large investment in the sector.
Mi Lei, a founding partner of Casstar, a Beijing-based core technology investment platform, used the metaphor of “root economy” to describe the vital role of core technologies in fueling domestic manufacturing upgrading.
He said on Sunday that although the output values of certain core technologies are not very large, they are vital to many downstream industries that can produce huge economic values.
For instance, the semiconductor equipment industries can support downstream industries ranging from software to e-commerce. Therefore, it’s wrong to neglect core technological development just because its revenue is not as high as some other industries, he said.
“No matter when and where China is at, we can’t forsake domestic companies’ autonomy, including the country’s independent brands and technologies, as well as their independent competitiveness,” said Yang Qing, a documentary producer, said in a speech.
Experts and industry insiders categorized core technologies into five areas, including space, life and substances. Specifically, there are about two dozen of these core technologies, including rockets, batteries, robots, 3D printing, biological innovative medicine and satellites.
Hu Qimu, chief research fellow at the Sinosteel Economic Research Institute, told the Global Times that core technologies are still the “weak spot” of China’s manufacturing transition, as technological bottlenecks like new materials, chips and industrial software have kept domestic manufacturing from transforming to a high-value pattern.
That’s especially true under the current circumstances as rising protectionism is casting shadows on the global trade environment, Hu said.
The US government has waged a tech crackdown on China, with a wide range of sanctions, including putting Chinese companies on a trade blacklist and cutting the flow of US capital to Chinese tech companies by placing tougher restrictions on Chinese companies listed in the US.
“China’s achievements in advanced technology are generally in line with China’s economic development status. After we grasp the production capabilities of many world-leading applications, we’ve now started to research the basic technologies,” independent tech analyst Xiang Ligang told the Global Times on Sunday, adding that the US move will not hinder China’s development.
Hu noted that China’s huge market provides a lot of profit-making opportunities for domestic companies, which then stimulates companies to make further investment in technical upgrading.
A worker walks in a digital spinning factory in Nantong, East China’s Jiangsu Province on October 26, 2021. Thanks to digitalization, the textile company reported growth of more than 20 percent year-on-year in output value and sales in the first three quarters. Photo: cnsphoto
