Asia Times: China has a plan, and it’s working. Beijing focuses on high-tech industry By DAVID P. GOLDMAN AND UWE PARPART MARCH 15, 2024

China is making significant strides in high-tech industries, focusing on self-sufficiency in semiconductors and other key technologies despite global challenges. With substantial investments, including a $27 billion fund for semiconductors and a 10% increase in the national science budget, China is aiming for breakthroughs in areas like nuclear fusion and advanced robotics.

“Beijing has little interest in the obsession of Western macroeconomists with demand management and focuses on industrial policy.”

👉It is prioritizing technological
👉advancements and industrial
👉transformation over macroeconomic measures like monetary easing or consumption stimulus.

Focused on achieving self-sufficiency in critical technologies such as semiconductors, China has increased its investments significantly.

Despite external skepticism about its economic health, China is witnessing a rise in core consumer price indices and exports, indicating a robust high-tech sector and industrial efficiency, further bolstered by automation and innovations in areas like nuclear fusion and advanced particle physics.

“CPC of China has a deep political interest in rectifying the enormous disparities of wealth and income that arose from the great wave of urbanization begun by Deng Xiaoping with the 1979 reforms. Xi Jinping’s byword for this priority is common prosperity. “”

This strategy is showing positive signs, with rising exports and advancements in technology positioning China as a global leader in high-tech sectors​​.

“The “two sessions” in early March – the National People’s Congress and the Chinese People’s Political Consultative Conference – took no macroeconomic action of significance, to the consternation of pundits who expected dramatic action from Beijing in the form of monetary ease, or consumption stimulus, or a property bailout.”

“China’s leadership focused single-mindedly on the transformation of Chinese industry through new technologies. It asks for and will give no quarter to America’s technology blockade, relying on an “all-country effort” to achieve self-sufficiency in semiconductors and other key technologies.”